Question

Which three of the following are key issues when evaluating the reliability of data used in an audit data analytics (ADA) application?

A. Procedures regarding data reliability
B. The matters the auditor considers in determining the nature, timing, and extent of procedures
C. The process used to produce the data
D. The process used to match the data with the general ledger

Answer 1

Three key issues when evaluating the reliability of data used in an audit data analytics (ADA) application are procedures regarding data reliability, the process used to produce the data, and the process used to match the data with the general ledger.

Step-by-step explanation:

When evaluating the reliability of data used in an audit data analytics (ADA) application, there are three key issues to consider:

1. Procedures regarding data reliability: This includes ensuring that the data collection and analysis procedures are reliable, consistent, and produce accurate results.
2. The process used to produce the data: It is important to assess the processes used to generate the data to determine if they are reliable and trustworthy.
3. The process used to match the data with the general ledger: The accuracy and reliability of the process used to link the data to the general ledger should be evaluated to ensure the data is correctly interpreted in the context of the audit.

By addressing these key issues, auditors can ensure the reliability of the data used in an ADA application and make informed decisions based on the results.