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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Definitions:

Partners' Liability

The legal responsibility shared by partners in a partnership for the debts and obligations of the business.

Convict On Parole

An individual who has been released from prison before completing their sentence under certain conditions for good behavior.

Criminal Codes

A compilation of laws and statutes that define acts punishable by the state, including crimes and the penalties for their commission.

Partnership

A business arrangement that is legally recognized, involving two or more partners who jointly manage the business and divide its profits.