A Primary Advantage of Using CAATs in the Audit of an Advanced

question 105

Multiple Choice

A primary advantage of using CAATs in the audit of an advanced computerized system is that it enables the auditor to

• A) Substantiate the accuracy of data through self-checking digits and hash totals.
• B) Utilize the speed and accuracy of the computer.
• C) Verify the performance of machine operations that leave visible evidence of occurrence.
• D) Gather and store large quantities of supportive audit evidence in machine-readable form.

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Definitions:

Tort Action

A legal claim arising from a civil wrong that causes harm or loss, leading to legal liability for the person who commits the tortious act.

Breach of Contract

The failure to fulfill the terms of a contract by one of the parties involved, leading to potential legal consequences.

Trademark

A recognizable sign, design, or expression identifying products or services of a particular source from those of others, legally protected against unauthorized use.

Golden Arches

A symbol or logo representing McDonald's Corporation, widely recognized as an international symbol of fast food.