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

question 29

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.

---

Definitions:

Quantum Meruit

A legal principle meaning "as much as he has earned," used to determine compensation based on the value of services rendered when no contract price is agreed upon.

Valid Contract

A legally binding agreement between parties that meets all required elements, such as offer, acceptance, consideration, and lawful purpose.

Eliminates Need

Removes the requirement or necessity for something, making it unnecessary.

Valid Offer

A proposal made in terms which are clear enough to be accepted and form a legally binding contract.