When the Auditor Is Performing Audit Data Analytics (ADA) as a Substantive

question 53

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 will not have evaluated inherent risk, and will likely have performed tests of controls to assess control risk
• C)the auditor will have evaluated neither inherent risk, nor tests of controls to assess control risk
• D)the results should be immediately sent to management for vetting

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Definitions:

Duty Of Care

A legal obligation imposed on an individual requiring that they adhere to a standard of reasonable care while performing any acts that could foreseeably harm others.

Honest Mistake

An error made in good faith without the intention to deceive or cause harm.

Liability For Mistake

A legal principle that holds parties accountable for errors that result in a breach of contract or harm to another party.

Personal Liability

The legal responsibility of an individual to assume financial obligations or compensate for wrongful acts.