Question: How is test data used to gather evidence about the effectiveness of controls? Why is using test data likely to be a more effective audit

How is test data used to gather evidence about the effectiveness of controls? Why is using test data likely to be a more effective audit test than reading client procedure manuals?

Step by Step Solution

★★★★★

3.49 Rating (176 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Test data are transactions created by an auditor to tests controls embedded in their clients compute... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

787-B-A-A-P (1801).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

One area that we haven't looked at yet is payroll. Can you get the documentation from Karina for payroll and then complete a "bridge work paper" like you did for the Revenue and Purchasing cycles? As...

Analytical procedures are used to gather evidence: (a) At the planning stage to gain an understanding of a client. (b) At the execution stage to evaluate information included in the fi nancial...

Multiple Choice Questions The following questions deal with auditing standards. Choose the best response. a. International Standards on Auditing are established by the (1) International Accounting...

Need help with these multiple choice questions for internal audit final exam. Due in 2 hours. QUESTION 1 RsQ_004Without management direction and assumption of responsibility, it would be...

1. Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor audit regarding: a. The predecessor's evaluation of matters of continuing accounting...

Question 1 of 20 View Policies Current Attempt in Progress Which of the following could be an internal nancial predictor in a regression analysis? 0 rent revenue. 0 demand for rental units. 0 average...

Theory 1. The primary purpose of an independent financial statement audit is to a. Provide a basis for assessing management's performance Comply with state and federal regulatory requirements Assure...

Your manager has provided you the following matrix and asked that you use it to complete the design assessment phase of your testing. The manager has already performed a preliminary survey, and has...

this is for Audit and i need someone who knows all the answers. Auditing -ACCT 460 - Section 1. 1) Who establishes generally accepted auditing standards? a) Public Company Accounting Oversight Board...

Give an example of how equity theory has affected your motivation or someone elses you work with or have worked with. Be sure to specify if you were underrewarded, overrewarded, or equitably rewarded.

XYZ Corp has a calendar year end. On January 1, 20x0, the company borrowed 5,000,000 Foreign Currency Units (FCU's) from a foreign bank. The loan is to be repaid on December 31, 20x3 and requires...

Islamic civilization has had a profound impact on the relationship between people and the government. One key aspect is the emphasis on justice, equality before the law, and the accountability of the...

Explain the benefits to Shuanghui of its takeover of Smithfield.

How do related parties impact risk? Why?

Define related parties.

What does a client risk if it operates in an industry subject to changing trends?

What is the Macaulay duration of a 7% coupon bond with 5 years to maturity and a yield to maturity of 6.4%?

Question 3. (15 points) Suppose you apply a 5-year bank loan of $400,000 at 12% APR, repayable in equal instalments at the end of each month. Assume that you pay $8,897.779 each month. a. How much is...

Find the triangular arbitrage and the Covered Interest Arbitrage of the following : knowing that the spot rate of the euro is 0.8835 and the interest rate of the Euro Area is 0% and the one of the...