A Primary Advantage of Using Computer-Assisted Audit Techniques (CAATs)packages to Audit

question 77

Multiple Choice

A primary advantage of using computer-assisted audit techniques (CAATs) packages to audit the financial statements of a client that uses computerized information systems is that the auditor may

• A)access information stored on computer files even with a limited understanding of the client's hardware and software features.
• B)consider increasing the use of substantive tests of transactions in place of analytical procedures.
• C)substantiate the accuracy of data by using self-checking digits and hash totals.
• D)reduce the level of required tests of controls to a relatively small amount.

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Definitions:

Information Architecture

The design and organization of information environments to facilitate usability and findability.

Consistent Labels

The practice of using the same terminology or naming conventions across a system or set of documents for clarity and ease of understanding.

Hyperlinks

References or links in electronic documents that allow users to easily navigate to other sections of the document or to external websites.

Analyzing The Situation

The process of examining a situation to understand its components, dynamics, and implications, often as a preliminary step in decision-making or problem-solving.