When the auditor is performing audit data analytics (ADA) as a substantive test of details of a population of transactions or balances, _______.
A)the auditor will have evaluated inherent risk, and will likely have performed tests of controls to assess control risk
B)the auditor will not have evaluated inherent risk, and will likely have performed tests of controls to assess control risk
C)the auditor will have evaluated neither inherent risk, nor tests of controls to assess control risk
D)the results should be immediately sent to management for vetting

Question

Quizplus · Accepted Answer

When the auditor is performing audit data analytics (ADA) as a substantive test of details of a population of transactions or balances, the auditor will have evaluated inherent risk, and will likely have performed tests of controls to assess control risk. This is because ADA is a form of substantive testing, which is conducted after assessing inherent risk and control risk. Therefore, option A is the correct answer. Option B is incorrect because the auditor must evaluate inherent risk before performing ADA. Option C is also incorrect because the auditor must assess control risk before performing ADA. Option D is not related to the question as it is not a valid option.

When the Auditor Is Performing Audit Data Analytics (ADA) as a Substantive