The auditor would like to conduct dual purpose tests verifying that the programs performing the totaling and aging of accounts receivable are functioning correctly as well as quantifying any errors.Which of the following is a dual purpose test that the auditor could use?
A)use analytical review and compare amounts from current to prior
B)inquire how the calculations are performed
C)use test data and observe how the invoice(s)in the test are aged
D)use generalized audit software to reperform the calculations

Question

Quizplus · Accepted Answer

Using generalized audit software to reperform the calculations would test the functionality of the programs and also allow the auditor to quantify any errors. Therefore, this option is a dual purpose test. The other options (A, B, and C) may help verify the accuracy of the calculations, but they do not necessarily test the functionality of the programs.

The Auditor Would Like to Conduct Dual Purpose Tests Verifying