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?

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

Answer 1

Resolving differences reported by customers on confirmation requests necessitates human interaction and cannot be performed through a computer program. Tracing receipts, selecting accounts for confirmation, and examining invoices can all be done with audit software.Answer is option a

Step-by-step explanation:

The task of resolving differences reported by customers on confirmation requests could not be efficiently performed by a computer program. This process involves communication with customers, understanding their concerns and discrepancies, and applying professional judgment to evaluate the information provided. This is inherently a manual task that relies heavily on human interaction and judgment.

Other tasks listed such as tracing audited cash receipts to accounts receivable credits, selecting accounts to be confirmed on a random basis, and examining sales invoices for completeness and consistency can be performed through a computer program designed for these specific audit procedures.