Audit Data Analytics- Questions and Answers
100% Solved
When reviewing output of the ADA if there is a large number of items (potential misstatement)
to review the auditor may choose to group the outcomes into categories to better assist the
auditor in the review
The auditor may divide the items found in the output of the ADA into 2 categories 1.
Clearly inconsequential
2. Not clearly inconsequential
The auditor may be able to quickly determine whether a specific item of interest or a group of
items are clearly inconsequential to the audit. What does Clearly inconsequential mean?
That the auditor believes that theses items do not pose a risk of material misstatement
individually or in aggregate.
#1 step auditor should perform when there are possible misstatements found in the outcome of
the ADA that are not clearly inconsequential The auditor may group these items by
common characteristics found amount them (time period, value, type)
#2 step auditor should perform when there are possible misstatements found in the outcome of
the ADA that are not clearly inconsequential The auditor would then determine the
possible misstatements
, #3 step auditor should perform when there are possible misstatements found in the outcome of
the ADA that are not clearly inconsequential After the groups are evaluated, further
analysis, procedures, and review should be performed to see if the groups present with no actual
misstatements, present with misstatements that are clearly inconsequential or if they present with
misstatements that are not clearly inconsequential.
The auditor should evaluate the outputs and outcomes of the ADA and perform further
procedures on the possible misstatements that have been categorized as not clearly
inconsequential.
Adjusting journal entries must be recorded ___. by the end of the entity's fiscal year,
before the preparation of FS
Adjusting journal entries NEVER involve the ___ account. CASH
SOC 1 report is a report on controls at a service organization relevant to User Entities
Internal Control Over Financial Reporting
SOC 2 report is a report on controls at a service organization relevant to Security
Availability
Processing Integrity
Confidentiality
Privacy
100% Solved
When reviewing output of the ADA if there is a large number of items (potential misstatement)
to review the auditor may choose to group the outcomes into categories to better assist the
auditor in the review
The auditor may divide the items found in the output of the ADA into 2 categories 1.
Clearly inconsequential
2. Not clearly inconsequential
The auditor may be able to quickly determine whether a specific item of interest or a group of
items are clearly inconsequential to the audit. What does Clearly inconsequential mean?
That the auditor believes that theses items do not pose a risk of material misstatement
individually or in aggregate.
#1 step auditor should perform when there are possible misstatements found in the outcome of
the ADA that are not clearly inconsequential The auditor may group these items by
common characteristics found amount them (time period, value, type)
#2 step auditor should perform when there are possible misstatements found in the outcome of
the ADA that are not clearly inconsequential The auditor would then determine the
possible misstatements
, #3 step auditor should perform when there are possible misstatements found in the outcome of
the ADA that are not clearly inconsequential After the groups are evaluated, further
analysis, procedures, and review should be performed to see if the groups present with no actual
misstatements, present with misstatements that are clearly inconsequential or if they present with
misstatements that are not clearly inconsequential.
The auditor should evaluate the outputs and outcomes of the ADA and perform further
procedures on the possible misstatements that have been categorized as not clearly
inconsequential.
Adjusting journal entries must be recorded ___. by the end of the entity's fiscal year,
before the preparation of FS
Adjusting journal entries NEVER involve the ___ account. CASH
SOC 1 report is a report on controls at a service organization relevant to User Entities
Internal Control Over Financial Reporting
SOC 2 report is a report on controls at a service organization relevant to Security
Availability
Processing Integrity
Confidentiality
Privacy
