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

Question

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

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The question asks us to determine whether the statement about CPA Canada’s Guide to Audit Data Analytics reflects a requirement for practicing CPAs. 
Option 1: True. The assertion here would claim that CPAs are strictly required to follow the five-step process published by CPA Canada. In practice, professional guidance issued by bodies like CPA Canada is typically framed as a recommended methodology or best practice, not a hard regulatory requirement. Therefore, stating that it is a mandatory obligation is misleading. 
Option 2: False. This option correctly captures the idea that the five-step process is guidance or a recommended framework for applying audit data analytics, not an unconditional requirement imposed on all CPAs. Firms may adopt the approach that best fits their audit context and regulatory expectations, while still aligning with professional standards. 
To distinguish the two: a True claim would imply a legal or regulatory compulsion to use that exact five-step process, which is unlikely for professional guidelines, whereas a False claim recognizes that adherence is encouraged but not strictly mandated. The nuance here hinges on distinguishing guidance from mandates, and in many professional contexts, such guides are adopted as best practices rather than compulsory rules. 
Option 1 is incorrect because it overstates the authority of the guide by classifying it as a required process. 
Option 2 is correct in the sense that the statement misrepresents the nature of CPA Canada’s guidance as a mandatory requirement, which is not typically how such guides are intended to function. 
Overall, the reasoning emphasizes the difference between guidelines and mandatory requirements, and why the claim of a required five-step process is not accurate.

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

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

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