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

question 70

Multiple Choice

When the auditor is performing audit data analytics (ADA) as a substantive test of details of a population of transactions or balances, the auditor will have _______.

• A)evaluated inherent risk
• B)evaluated audit risk
• C)confirmed the tests with management prior to conducting them
• D)already audited every account in the population

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Definitions:

Downward Counterfactual

Imagining how situations could have been worse, which can sometimes improve emotional state by making one's current situation seem better in comparison.

Magical Thinking

The belief that one's thoughts, words, or actions can achieve specific effects in the real world in ways that defy the conventional laws of cause and effect.

Primacy Effect

The tendency to remember information at the beginning of a list better than the information in the middle or the end.

Recency Effect

The tendency to remember and place more importance on the most recently presented information or experiences.