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

question 53

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 will not have evaluated inherent risk, and will likely have performed tests of controls to assess control risk
• C)the auditor will have evaluated neither inherent risk, nor tests of controls to assess control risk
• D)the results should be immediately sent to management for vetting

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Definitions:

Stockholders

Individuals or entities that own shares in a corporation, giving them certain rights regarding the company's management and profits.

Owners

Individuals or entities that possess legal rights and responsibilities over a project, business, or asset.

Scope Document

A scope document outlines the aims, deliverables, boundaries, and methods of a project, serving as a foundational agreement between stakeholders on what the project will accomplish.

Complex Project

A project characterized by high levels of uncertainty, risk, and interdependencies among its components, often requiring innovative solutions.