A common software-based audit technique involves _______.
A)requesting management complete flowcharts and questionnaires related to the audit
B)submitting certain test data into the client's software application while the auditor is in control of the software
C)allowing the internal auditors access to the external auditor's software application in order to assist with the audit
D)deleting client files and transactions to ensure that the client's software appropriately alerts the correct staff

Question

Quizplus · Accepted Answer

This technique, known as "audit data analytics," involves submitting test data into the client's software application while the auditor is in control of the software. This allows the auditor to test the functionality and accuracy of the software, identify any potential errors or irregularities, and gather evidence to support their audit findings. This technique is often used in combination with other audit procedures, such as document review and observation, to provide a comprehensive assessment of the client's controls and financial reporting practices.

A Common Software-Based Audit Technique Involves _______