An Internal Auditor Is Using Data Analytics to Focus on High-Risk

question 156

Multiple Choice

An internal auditor is using data analytics to focus on high-risk areas during an engagement. The auditor has obtained data and is working to eliminate redundancies in the data. Which of the following statements is true regarding this scenario?

• A) The auditor is normalizing data in preparation for analyzing it.
• B) The auditor is analyzing the data in preparation for communicating the results.
• C) The auditor is cleaning the data in preparation for determining which processes may be involved.
• D) The auditor is reviewing the data prior to defining the question.

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Definitions:

Current Accounts

A type of demand deposit account that allows withdrawals and deposits, typically used by businesses for their frequent money transactions.

Financing Activities

Transactions and events where cash flow comes into the company to help in financing its operations or to fund the expansion of its business.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.

Accounts Receivable

The amount due to an enterprise by its clients for delivered goods or services awaiting payment.