Question

Calvin Andrews is an auditor using audit data analytics (ADA) on the accounts receivable testing for a manufacturer. Which of the following is Calvin looking for when performing his ADA application?

1) Anomalies
2) Atrophies
3) Quantities
4) Qualities

Answer 1

Calvin Andrews is using ADA to look for anomalies in the accounts receivable data.

Step-by-step explanation:

Calvin Andrews, an auditor, is using audit data analytics (ADA) for accounts receivable testing in a manufacturing company. When performing his ADA application, Calvin is primarily looking for anomalies in the accounts receivable data. Anomalies are unexpected or unusual patterns or values that deviate from the norm. By identifying anomalies, Calvin can determine if there are any irregularities or fraudulent activities in the accounts receivable.