Audit Data Analytics (ADA)_______

question 39

Multiple Choice

Audit data analytics (ADA) _______.

• A)is effective not only for identifying general types of misstatements, but is also capable of identifying specific transactions or accounts that are likely to be misstated
• B)is effective only for identifying general types of misstatements
• C)is only capable of identifying specific transactions or accounts that are likely to be misstated
• D)is effective neither at identifying general types of misstatements or capable of identifying specific transactions or accounts that are likely to be misstated

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Definitions:

Transactions

The exchange of goods, services, or funds between two or more parties in business.

Transactions

Financial activities or events that result in the exchange of assets, liabilities, or equity between entities.

Sole Stockholder

An individual or entity that owns 100% of a corporation’s stock, holding complete control over the firm.

Money Units

A standard unit of measure for accounting transactions, typically representing the currency in which a financial transaction is recorded.