For clients with highly sophisticated computerized accounting systems, auditors perform tests throughout the year to identify significant or unusual transactions. This approach is called ________ and is frequently used in integrated audits of financial statements and internal control for public companies.
A) continuous audit program
B) continuous auditing
C) continuous analytical testing
D) continuous audit mix

Question

Quizplus · Accepted Answer

The approach described in the question is called continuous auditing, which involves performing tests throughout the year to identify significant or unusual transactions in highly sophisticated computerized accounting systems. This approach is commonly used in integrated audits of financial statements and internal control for public companies. Continuous analytical testing is a related concept that involves using automated tools to perform ongoing monitoring and analysis of financial data, but it is not the same as continuous auditing. Continuous audit program and continuous audit mix are not commonly used terms in auditing.

For Clients with Highly Sophisticated Computerized Accounting Systems, Auditors Perform