When the Auditor Is Performing Audit Data Analytics (ADA) as a Substantive

question 71

Multiple Choice

When the auditor is performing audit data analytics (ADA) as a substantive test of details of a population of transactions or balances, _______.

• A)the auditor will have evaluated inherent risk and will likely have performed tests of controls to assess control risk
• B)the auditor is yet to evaluate inherent risk but has likely performed tests of controls to assess control risk
• C)the auditor will have evaluated inherent risk, but not yet performed tests of controls to assess control risk
• D)the auditor has not yet assessed either control or inherent risk

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Refers to the efficiency and effectiveness in producing goods or services, often measured in terms of output per unit of input.

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