Question 9

Cluster analysis is defined as _______.

-analyzing management techniques and administrative policies simultaneously

-the process of discovering groups (termed clusters in data science) of similar items in a set of data; items in the same group are similar, while items in different groups are not as similar.

-determining which package of audit services can be sold to a client at the best possible price

-the process of discovering individual pieces of similar items in a set of data; items in the same group are similar, while items in different groups are not as similar.

Question 10

Matching information in key data fields _______.

-is a process where the auditor uses audit data analytics to search for key characteristics that may exist in the same database

-is a process where the auditor uses audit data analytics to search for key characteristics that may exist in several different databases

-is typically a task assigned to the internal audit function

-is a process where the auditor uses his or her understanding of inherent risk to search for key characteristics that may exist in several different databases

Question 11

If the auditor is performing substantive tests at an interim date, _______.

-the auditor must perform steps to update their conclusion to the date of the financial statements

-the auditor should plan to conduct more tests once the audit report has been issued

-the auditor should perform no further steps to update their conclusion through the date of the financial statements

-then this testing will suffice and no further testing needs to be done

Question 12

If a confirmation of an accounts receivable balance is not returned by the customer, the auditor might validate the receivable by _______.

-looking at evidence of subsequent cash receipt in the amount of the billing for a different customer

-looking at evidence of subsequent cash receipt in the amount of the billing to the customer

-confirming the receivable with senior management

-confirming a different receivable with a different customer instead

Question 13

Attribute sampling is a technique used to reach a conclusion about a sample in terms of a rate of occurrence.

Group of answer choices

True

False

Question 14

A material weakness is a deficiency where there is more than a remote possibility that a misstatement that is less than material, but still significant enough that it should be reported to those charged with governance.

Group of answer choices

True

False

Question 15

The first step in assessing control risk is to _______.

-understand entity-level controls

-identify relevant controls to test

-determine preliminary audit strategy

-understand the flow of transactions

Question 16

Prevention controls are those applied _______.

-at the transaction level only

-to each transaction during normal processing and are intended to stop fraud or errors from occurring

-at both the entity and transaction levels

-to each entity during normal processing and are intended to stop fraud or errors from occurring

Question 17

Internal controls can _______.

-only include certain procedures approved by management and the auditor

-include any procedure used and relied upon by the client to prevent errors from occurring when processing transactions, or to detect and correct errors that may occur in these transactions

-never be subject to senior management override

-include any procedure used and relied upon by the auditor to prevent errors from occurring when processing transactions, or to detect and correct errors that may occur in these transactions