The auditor can use audit data analytics to identify potential situations where sales returns are understated or the allowance for doubtful accounts is understated for specific customers.

Question

Quizplus · Accepted Answer

Audit data analytics can be used to detect anomalies or patterns in data that may indicate potential misstatements or fraud, including situations where sales returns or allowances for doubtful accounts are understated. By analyzing transactional data and comparing it to industry benchmarks or historical trends, auditors can identify unusual patterns or outliers that may require further investigation or testing.

The Auditor Can Use Audit Data Analytics to Identify Potential