CS Professional · Internal and Forensic Audit · Emerging Issues and Challenges
Sahyadri Textiles Ltd's internal audit head wants to test 100% of vendor payments instead of a sample, using software that scans every transaction for duplicates and unusual patterns. Which emerging internal audit practice is this?
This is continuous auditing using data analytics. The software examines the whole population of vendor payments on an ongoing basis, flagging duplicates and anomalies, instead of relying on a manual sample tested after the period ends.
- AContinuous auditing using data analyticsCorrect
- BStatutory audit rotation
- CManual substantive sampling
- DPost-year-end peer review
Explanation
Scanning the entire population of transactions with software on an ongoing basis is continuous auditing supported by data analytics. Manual sampling tests only a subset, so it does not match. Rotation and peer review concern different matters.
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