Some Key Issues to Consider When Preparing Data for Audit

question 78

Multiple Choice

Some key issues to consider when preparing data for audit data analytics are _______.

• A)Is the data complete?
• B)Does the data need to be cleaned?
• C)Does the data agree with the general ledger and the financial statements?
• D)All these answer choices are correct.

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Definitions:

Financial Statements

A comprehensive set of reports that provide insights into an entity's financial position, performance, and cash flows over a specific period.

Basic Accounting Equation

The fundamental formula in accounting that states that Assets = Liabilities + Equity.

Liabilities

Financial obligations or debts owed by a business to another entity, which are expected to be settled through the transfer of economic benefits like cash or goods.

Owners' Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owners' share in the company.