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IT Service Management and Systems Audit

A systems auditor used generalized audit software to extract duplicated invoice numbers and transactions over the approval limit from a year's worth of transaction data (several million records) in a sales system. Which of the following is an appropriate advantage of using computer-assisted audit techniques (CAAT) in this way?

  1. AIt can prove that a program has no errors without examining its internal logic
  2. BThe extracted transactions can be concluded to be fraudulent, so no further checks are needed
  3. CExceptional transactions that are easily missed by sampling, which examines only part of the data, can be extracted efficiently from all the records
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Answer: C. Exceptional transactions that are easily missed by sampling, which examines only part of the data, can be extracted efficiently from all the records

CAAT is a collective term for techniques that perform audit procedures with computers, and it includes extracting and analyzing data with generalized audit software. Because it can extract the records that meet given conditions from all the data, even in large volumes, it makes it easier to find exceptional transactions that sampling of part of the data tends to miss. However, the extracted records are only candidates for examination, and whether they are fraud or errors must be confirmed by checking the original vouchers, interviewing and so on.

  • A. Data analysis shows the situation within those data; it does not prove that a program has no errors.
  • B. The extracted transactions are candidates for examination, and whether they are fraudulent is judged through further checks.
  • C. Correct. Exceptional transactions can be extracted efficiently from all the records.
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