Final answer:
When auditors have access to reliable and relevant electronic data, automated testing is recognized as an efficient approach because it is time-efficient, minimizes human error, and is more practical for analyzing large datasets.
"The correct option is approximately option B"
Step-by-step explanation:
The student's question relates to the efficiency of different testing approaches when an auditor is presented with reliable and relevant data in electronic form. In such a situation, the choice of automated testing tends to be an efficient approach. Unlike manual testing, which is labor-intensive and time-consuming, automated testing can quickly process large volumes of data.
This efficiency is particularly beneficial in scenarios involving complex calculations or when testing needs to be replicated to verify results, as is often the case in the fields of education, housing, labor market, and the criminal justice system.
Advantages of Automated Testing
Automated testing is not only faster but it also reduces the potential for human error, leading to more accurate results. It is especially effective when dealing with large datasets that would be impractical to analyze manually. Moreover, it enhances the replicability of tests, which is a critical factor in justification of the data selection for answering scientific questions, as outlined in standard 4.1.
In conclusion, when auditors have access to electronic data that is both reliable and relevant, automated testing is a superior method that enables them to conduct thorough and replicable testing, which is crucial for establishing cause and effect relationships in audit studies.