Which of the Following Data Analytics Tools Might an Auditor

question 101

Multiple Choice

Which of the following data analytics tools might an auditor use to test the completeness assertion for sales?

• A)Analyze data to assess the proper operation of sales cutoff tests around year-end.
• B)Age accounts receivable.
• C)Use data visualization tools to evaluate disclosures about sales and profitability.
• D)All of the above.

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Definitions:

NPV

NPV (Net Present Value) is a calculation used to assess the profitability of a project or investment by summing the present values of all cash inflows and outflows associated with it.

Replacement Chain Method

A decision analysis for evaluating the replacement of assets, considering the optimal time to replace each asset.

Time Horizons

The length of time over which an investment is intended to be held or a financial goal is expected to be achieved.

Present Values

The contemporary valuation of a forthcoming sum of money or cash flows, based on a given rate of return.