In Which of the Following Situations Is the Auditor Most

question 159

Multiple Choice

In which of the following situations is the auditor most likely to use audit data analytics?

• A)The available data is reliable and comes from a strong system of internal controls.
• B)Internal controls are weak.
• C)Certain audit procedures are required by professional standards.
• D)The auditor needs to have data that is relevant to the audit test.

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Definitions:

Quantity Demanded

Quantity demanded is the amount of a good that buyers are willing and able to purchase at a particular price over a specified period.

Insurance Policy

A contract between an insurer and a policyholder in which the insurer agrees to pay for specified losses in exchange for a premium.

Probability

A measure of the likelihood that an event will occur, often expressed as a fraction or percentage.

Independent Events

Events for which the occurrence of one does not affect the likelihood of occurrence of any of the others.