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:

Promotional Strategy

A plan implemented by a business to increase awareness, demand, and sales of a product or service.

Diffusion of Innovation

The process by which a new idea, product, or technology spreads through a population or social system.

Product Adopter

An individual or entity that starts using a new product, often categorized by the timing of adoption, such as innovators, early adopters, early majority, late majority, and laggards.

Population Incidence

The number of new cases of a particular condition or disease in a specified population within a given time period, often used to measure risk and spread within epidemiological studies.