Computer-Assisted Audit Techniques Quiz

What is the primary purpose of Computer-Assisted Audit Techniques (CAATs)?

• To evaluate the integrity of an application

• To develop new accounting standards

• To perform financial planning for an organization

• To calculate the sample size for financial audits

Which of the following is NOT an example of CAAT software?

• ACL

• IDEA

• Excel

• Microsoft Word

What does the term "auditing through the computer" refer to?

• Using computers for data entry in audits

• Auditing the systems directly through their data processing controls

• Auditing based on physical documents only

• Evaluating management reports

Which of these sampling techniques is used to test specific, predefined attributes of transactions?

• Random Attribute Sampling

• Variable Sampling

• Stratified Sampling

• Convenience Sampling

What is one of the benefits of using ACL in an audit?

• It provides detailed statistical analyses of random samples

• It reduces the need for manual procedures

• It automates the entire auditing process

• It performs real-time financial reporting

In CAATs, which parameter is critical when defining the sample size for Random Attribute Sampling?

• Expected error rate

• Total assets

• Auditor's salary

• IT infrastructure quality

What is an example of a processing control in an application audit?

• Recalculating batch totals

• Encrypting sensitive data

• Checking for correct file format

• Validating user login credentials

What is the main function of generalized audit software in application reviews?

• To automate payroll calculations

• To analyze the logic and accuracy of spreadsheet calculations

• To verify compliance with tax regulations

• To track employee attendance

What kind of audit tests are conducted when there is inadequate application control?

• Limited data testing

• Extensive testing to verify data integrity

• System efficiency reviews

• Sample-based analysis

Which CAAT tool is specifically designed to assist the audit of applications by processing large amounts of data?

• IDEA

• Excel

• Audit Command Language (ACL)

• Power BI