Question

Which of the steps associated with accessing and preparing data for audit data analytics (ADA) does the following question relate? "Is the data subject to the entity's system of internal control over financial reporting (ICFR)?"

1) Relevance of the data
2) Cleanliness of the data
3) Reliability of the data
4) Completeness of the data

Answer 1

The question pertains to the 3) Reliability of data within the scope of audit data analytics, as it questions whether the data is governed by internal controls that assure its accuracy for financial reporting.

Step-by-step explanation:

The question "Is the data subject to the entity's system of internal control over financial reporting (ICFR)?" relates to the reliability of the data in the context of accessing and preparing data for audit data analytics (ADA). Reliability refers to the degree to which data can be depended upon to be accurate and suitable for making decisions. If the data is under the control of ICFR, it implies a certain level of trustworthiness as the internal controls are designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements.