Question

Which of the following is true of generalized audit software packages?

A) They can be used only in auditing online computer systems.

B) It involves auditing while data is being processed.

C) They can be used to examine an entire population and eliminate the need for sampling.

D) They enable the auditor to perform all manual test procedures less expensively.

Answer 1

The correct answer is option C) They can be used to examine an entire population and eliminate the need for sampling.

Step-by-step explanation:

The correct answer to the question is option C) They can be used to examine an entire population and eliminate the need for sampling.

Generalized audit software packages are computer programs that are designed to assist auditors in performing their tasks. These software packages allow auditors to analyze large sets of data efficiently and effectively. With the help of these software packages, auditors can examine an entire population of data, rather than relying on sampling, which can save time and effort.

For example, a generalized audit software package can be used to analyze all the financial transactions recorded in a company's accounting system to detect any irregularities or errors. By examining the entire population of transactions, the auditor can identify patterns or trends that may require further investigation, without having to manually sample the data.