Final answer:
Substantive procedures that can be performed using audit software include selecting random audit samples, rearranging data for analysis, and examining records for quality and validity. Software aids in many tasks but cannot fully confirm all client data accuracy without further steps. D. Confirm all client data is accurate, providing proof that the financial statements present fairly in all respects.
Step-by-step explanation:
When it comes to performing substantive procedures with audit software, there are specific actions that auditors might undertake to ensure the accuracy and integrity of financial information. Substantive procedures are direct tests of financial information through examination and confirmation, and are used by auditors to detect material misstatements at the assertion level.
The following options are substantive procedures that can be performed with audit software:
- Random audit samples - Auditors can use software to select a random sample from a population for testing to ensure that the sample is representative and that the results can be extrapolated to the entire population.
- Rearrange data and perform analyses - Software can be used to organize data into a format that is conducive to analysis. Auditors can then perform various analyses, such as trend analysis, ratio analysis, and other comparisons, to identify unusual transactions or events.
- Examine the client's records for quality, completeness, and valid conditions - Audit software can run checks on the data to ensure that all transactions are complete, comply with the set rules or standards, and are validly included in the datasets.
The last option provided, confirming all client data is accurate, is not a procedure that can be solely performed by audit software. While software can assist in these procedures, full confirmation requires additional steps that may include physical verification and external confirmation procedures.
Auditors utilize software in alignment with proper conduct guidelines and statistical procedures laid out by professional associations and federal agencies to ensure that analyses are accurate and meaningful.