What Are the Two Approaches of CAATs in Auditing Systems

question 25

Essay

What are the two approaches of CAATs in auditing systems? What are the differences between them?

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Definitions:

Implied Assumption

An unstated understanding or presumption that underlies an agreement or contract, accepted as a term by the parties involved.

Risk Doctrine

A principle in law that assigns liability based on the foreseeable risk created by actions or negligence, particularly in situations where harm could have been prevented.

Action Of Negligence

A legal claim made against someone for harm caused by their failure to act as a reasonable person would under similar circumstances.

Six Elements

Essential components required for something to be complete or legally binding; the term contextually varies, such as in contracts or scientific compositions.