Final answer:
The correct statement about audit analytics is that CAATS require periodic validation to ensure their continued effectiveness. CAATs enhance audit procedures and must be re-evaluated over time, while use of audit analytics is essential in forming an audit opinion.
Step-by-step explanation:
The correct statement regarding audit analytics is: a. For CAATS a periodic validation should take place to make sure they continue to function as expected. Computer-Assisted Audit Tools and Techniques (CAATs) are used to enhance the effectiveness and efficiency of audit procedures. They need to be validated periodically because changes in systems, processes, and environments may affect their ability to provide reliable results. It is a common misconception that once you've created and tested a CAAT, no further evaluation is needed. Auditors should definitely use audit analytics as part of their procedures in forming an audit opinion, contrary to the statement that they should not. Lastly, analytics often adhere to a standard set of principles, but consideration to the individual circumstances under which they are applied is important for accurate evaluation.