The auditor is most likely going to perform audit data analytics (ADA) as a substantive test when the auditor has performed tests of controls and concluded that the entity has _______.
A)strong information technology (IT) general controls, including strong access controls
B)strong IT application controls related to the assertion being tested
C)strong controls over electronic data interchange and the exchange of electronic information about a transaction between the client and its customers or suppliers.
D)All these answer choices are correct.

Question

Quizplus · Accepted Answer

The auditor is likely to perform audit data analytics (ADA) as a substantive test when they have concluded that the entity has strong IT general controls, strong IT application controls related to the assertion being tested, and strong controls over electronic data interchange. These conditions suggest a reliable IT environment conducive to effective ADA use.

The Auditor Is Most Likely Going to Perform Audit Data