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Some Key Questions That the AICPA Guide for Audit Data

question 109

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Some key questions that the AICPA Guide for Audit Data Analytics suggests that the auditor should address when evaluating the reliability of data used in an audit data analytics (ADA) application are:


Definitions:

Tacit Collusion

A non-explicit agreement among competitors to limit competition and increase prices or profits without direct communication.

Number of Firms

The total count of businesses operating within a particular market or industry.

Price Leadership

A strategy where the dominant firm in a market sets the price of goods or services, and other competitors follow suit, often seen in oligopolistic markets.

Industry Agreement

A collective consensus or a formal contract among companies within the same industry, often regarding standards, pricing, or other competitive practices.

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