Question

Identify substantive procedures that can be performed using audit software. (Select multiple)

a) Multiple select random audit samples.
b) Rearrange data and perform analyses.
c) Examine the client's records for quality, completeness, and valid conditions.
d) Confirm all client data is accurate, providing proof of fair presentation in financial statements.

Answer 1

Audit software facilitates substantive procedures such as selecting random audit samples, rearranging data for analysis, and examining the client's records for quality and completeness.

Step-by-step explanation:

Substantive procedures using audit software include the following actions:

• Random audit samples can be selected to examine data. This often involves using the software to perform random sampling or select specific items for testing based on criteria such as high value or high risk.
• Rearranging data and performing analyses can help auditors identify trends, outliers, or inconsistencies within the financial data, which could indicate errors or fraudulent activities.
• Examine the client's records for quality, completeness, and valid conditions. This involves using various functionalities of the software to ensure that the transactions recorded by the client are complete and accurately represented in the financial statements.

While the confirmation of all client data for accuracy and providing proof of fair presentation in financial statements is ultimately the objective of an audit, this process involves a combination of both substantive procedures and overall audit judgment, rather than being a procedure performed exclusively by software.