chapter 6 quiz

Question 1

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

Answer 1

Classification

Question 2

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

Answer 2

Diagnostic analytics

Question 3

What type of analysis would help auditors find missing checks?

Answer 3

Sequence check

Question 4

Which testing approach would be useful in assessing the value of inventory shrinkage given multiple environmental factors?

Answer 4

Regression

Question 5

The determinants for sample size include all of the following except:

Answer 5

potential risk of account.

Question 6

Which items would be currently out of the scope of Data Analytics?

Answer 6

Direct observation of processes

Question 7

Which of the following is the best choice as the unique identifier for each sales order?

Answer 7

Sales_Order#

Question 8

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

Answer 8

Fuzzy matching

Question 9

Benford’s law suggests that the first digit of naturally occurring numerical datasets follow an expected distribution where:

Answer 9

the leading digit of 8 is more common than 9.

Question 10

CAATs are automated scripts that can be used to validate data, test controls, and enable substantive testing of transaction details or account balances and generate supporting evidence for the audit. What does CAAT stand for?

Answer 10

Computer-assisted audit techniques