When Performing Audit Data Analytics (ADA) as a Risk Assessment

question 61

Multiple Choice

When performing audit data analytics (ADA) as a risk assessment procedure, _______.

• A)the auditor will have first obtained an understanding of the entity and its environment
• B)the auditor is yet to obtain an understanding of the entity and its environment
• C)the auditor will work closely with client management to confirm which risk assessment procedures they would prefer the auditor conduct
• D)the auditor should contact the prior auditor for assistance with this procedure

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Definitions:

Company Policy

Guidelines and rules established by an organization to dictate behavior and decisions in the workplace.

Buffer

A temporary storage area used to manage data while it is being transferred from one place to another, ensuring smooth processing.

Neutral

Not supporting or favoring either side in a conflict, competition, or dispute.

Noncontroversial

Describing topics or issues that are unlikely to provoke disagreement or debate.