Chapter 6 + 2 PDFs (DA Canada) and CM/CA Quiz

Question 1

According to the CICA Audit Data Analytics Alert, which of the following statements is false?

1. Data reliability, relevance, and availability are core attributes of data used in most audit data analytics.
2. Ratio analysis is an example of audit data analytics
3. All audit data analytics follow the same development steps.
4. Audit data analytics may enable auditors to reduce the use of sampling and thereby sampling risk

Answer 1

3

Question 2

According to the CICA Audit Data Analytics Alert, which of the follow is a hurdle which needs to be addressed to further the use of audit data analytics?

1. Evolution of information technology
2. Limitations of sampling
3. Use of “Big Data” by audited entities
4. Need for IT competencies

Answer 2

Need for IT competencies

Question 3

The determinants of sample size include all of the following except ___________.

1. Confidence level
2. Potential risk of account
3. Tolerable misstatement
4. Estimated misstatement

Answer 3

2 Potential risk of account

Question 4

Monetary unit sampling is more likely to _______.

1. Sample accounts with less risk
2. Sample accounts with smaller balances
3. Sample accounts with more risk
4. Sample accounts with larger balances

Answer 4

4 Sample accounts with larger balances

Question 5

What describes finding correspondences between at least two types of text or entries that may not match perfectly?

1. Incomplete linkages
2. Fuzzy matching
3. Incomplete matching
4. Algorithmic matching

Answer 5

2

Fuzzy matching

Question 6

Which type of audit analytics might be used to find hidden pattern or variables linked to abnormal behavior?

1. Predictive analytics
2. Diagnostic analytics
3. Descriptive analytics
4. Prescriptive analytics

Answer 6

1

Predictive

Question 7

What does CAAT stand for?

1. Computer-automated accounting tests
2. Computerized audit and accounting techniques
3. Computerized audit aids and tests
4. Computer-assisted audit techniques

Answer 7

Computer-assisted audit techniques

Question 8

What type of analysis would help auditors find missing checks?

1. Fuzzy matching
2. Sequence check
3. Decision support system
4. Benford’s law

Answer 8

Sequence check

Question 9

Which testing approach would be used to predict whether certain cases should be evaluated as having fraud or no fraud?

1. Classification
2. Probability
3. Artificial intelligence
4. Sentiment analysis

Answer 9

Classification

Question 10

If we are using a manual approach to monetary unit sampling, what would be the sampling interval for a book value of $2,000,000 and a sample size of 200?

1. 10,000
2. 14,000
3. 4,000
4. 100,000

Answer 10

10,000