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.

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Definitions:

External Factor

An influence, condition, or variable that originates outside of an organization and can affect its performance and strategies.

Network of Contacts

A system or group of interconnected people that an individual can communicate with, usually for professional or personal advantage.

Statement of Objective

A clear, concise description of the goals or intended outcomes of a project, research, or activity.

Headhunters

Recruiting specialists or agencies that seek out, identify, and approach individuals to fill specific high-level positions within organizations.