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CS Professional · Internal and Forensic Audit · Internal Audit Tools and Techniques

An internal auditor at Ganga Retail Ltd uses software to scan all 90,000 sales transactions for duplicate invoice numbers and invoices just below the approval limit. Which approach is this?

This is a computer-assisted audit technique applied to the full population. Software checks all 90,000 transactions for duplicates and values just below approval limits, which removes sampling risk and helps detect fraud indicators, unlike sampling or a single-transaction walkthrough.

  1. AComputer-assisted audit technique testing the full populationCorrect
  2. BAttribute sampling of a small subset
  3. CJudgemental sampling based on past experience
  4. DWalkthrough of a single transaction

Explanation

Using software to examine all transactions for duplicates and threshold clustering is a computer-assisted audit technique applied to the entire population, so no sampling risk arises. It is not a sample-based or single-transaction test.

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