Many Auditors Use Generalized Audit Software to Assist Them in the Examination

question 39

Essay

Many auditors use generalized audit software to assist them in the examination of clients' computer records.
a.Describe what is meant by generalized audit software.
b.List two advantages of the use of generalized audit software.
c.List three functions that may be performed with this type of software.

---

Definitions:

Risk-Averse

A characteristic of investors who prefer lower risk investments, opting for certainty and stability in their investment choices.

Variance

A measure of the dispersion of a set of data points around their mean value, representing the average of the squared differences from the mean.

Reward-To-Volatility Ratio

A measure used in finance to assess the return of an investment relative to its risk, with higher ratios indicating better risk-adjusted returns.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points, often used in finance to gauge the volatility of an investment.