Which of the Following Is not Accurate as It Applies

question 77

Multiple Choice

Which of the following is not accurate as it applies to using data analytics in financial statement auditing:

• A)It is often used with audit software such as ACL and IDEA.
• B)It may be used in the risk assessment stage of the audit.
• C)It may consider nonfinancial information.
• D)It ordinarily requires that all audit staff members maintain a high level of data analytics skills.

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Definitions:

Realized Gains

Profits made from selling an asset at a higher price than its purchase cost, which has been actually earned and can be reported in financial statements.

Available-for-Sale Securities

Financial assets that are held for sale in the short term and which can be converted into cash, generally classified as current assets.

Fair Values

The estimated market value of an asset or liability, based on current market prices.

Unrealized Holding

Refers to the increase or decrease in the value of investments held by the company that have not been sold.