Audit data analytics are particularly useful at the risk assessment stage of an audit, but should not be used to identify exceptions for further examination during substantive testing.

Question

BlackTom AI · Accepted Answer

The question presents a statement about audit data analytics and asks whether it is true or false. 
Option True: The claim that analytics are only useful in risk assessment and should not be used to identify exceptions during substantive testing is misleading. While analytics are indeed valuable in risk assessment to identify areas of potential risk, they are also commonly used during substantive testing to detect anomalies, outliers, or patterns that merit further examination. This makes the blanket claim in option True incorrect. 
Option False: This option correctly challenges the idea that analytics have utility solely at risk assessment. In practice, audit data analytics serve multiple purposes across the engagement life cycle: they help with risk assessment, planning, and specifically identifying exceptions or anomalies during substantive testing that require follow-up, investigation, or additional evidence. Therefore, saying analytics should not be used to identify exceptions during substantive testing is inaccurate. 
In summary, the statement conflates the full utility of audit data analytics and overlooks their role in substantive testing, so the appropriate choice is False.

BUSI_V 335 101 102 2025W1 Module 7 Quiz - Pivot Tables and Audit Data Analytics

Audit data analytics are particularly useful at the risk assessment stage of an audit, but should not be used to identify exceptions for further examination during substantive testing.

View Explanation

Log in for full answers

Similar Questions

In this new world of audit data analytics, it is important to Blank ______.

Only one of the following statements is true. Which one?

Which of the following are potential benefits of using Audit Data Analytics? Pick all that apply.

What is the difference between Audit Data Analytics (ADAs) and Computer Assisted Audit Techniques (CAATs)?

Practicing CPAs are required to follow the five-step process published by CPA Canada in its Guide to Audit Data Analytics.

Only one of the following statements is true. Which one?

Which of the following techniques are potentially useful when performing ADAs during an audit? Select all that apply.

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler