Question

A primary advantage of using generalize audit software packages to audit the financial statements of a client that uses an IT system is that the auditor may

a. Consider increasing the use of substantive tests of transactions in place of analytical procedures
b. Substantive the accuracy of data through self-checking digits and hash totals
c. Reduce the level of required tests of controls to a relatively small amount
d. Access information stored on computed files while having a limited understanding of the client's hardware and software features.

Answer 1

The primary advantage of using generalized audit software packages is that auditors can d) access information stored on computer files with limited knowledge of the client's IT system. Hence, d) is correct.

Step-by-step explanation:

The primary advantage of using generalized audit software packages to audit the financial statements of a client that uses an IT system is that the auditor may access information stored on computer files while having a limited understanding of the client's hardware and software features.

These software packages enable auditors to extract and analyze data directly from the client's IT system, which saves time and effort compared to manually reviewing hard copies or engaging IT specialists.

By accessing computer files, auditors can easily extract relevant information for testing and analysis, improving the efficiency and effectiveness of their audit procedures.