Question

Data Corporation has just computerized its billing and accounts receivable record keeping. You want to make maximum use of the new computer in your audit of Data Corporation. Which of the following audit techniques could not be performed through a computer program?

1) Tracing audited cash receipts to accounts receivable credits.
2) Selecting accounts to be confirmed on a random basis.
3) Examining sales invoices for completeness, consistency between different items, valid conditions, and reasonable amounts.
4) Resolving differences reported by customers on confirmation requests.

Answer 1

In an audit of Data Corporation, resolving differences reported by customers on confirmation requests cannot be done through a computer program, needing human intervention and personal communication instead.

Step-by-step explanation:

The audit technique that could not be performed through a computer program in the audit of Data Corporation is resolving differences reported by customers on confirmation requests. Automated systems and computer programs can efficiently handle tasks such as tracing audited cash receipts (audited cash receipts) to accounts receivable credits, selecting accounts to be confirmed randomly, and examining sales invoices for completeness and consistency. However, addressing and resolving variances noted by customers usually involve human judgment and personal communication, which cannot be fully managed by a computer program.

The audit technique that could not be performed through a computer program is 4) Resolving differences reported by customers on confirmation requests. This technique involves interacting with customers directly to address any discrepancies in the information provided on the confirmation requests. It requires human intervention and cannot be automated through a computer program.