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CMA Intermediate · Corporate Accounting and Auditing · Application of Technology in Audit and Audit Trail

Which of the following is a benefit of using automated audit tools such as computer-assisted audit techniques (CAATs)?

CAATs improve efficiency and consistency when testing large volumes of data. They do not guarantee fraud detection, remove the need for documentation, or eliminate the role of management representations in the audit evidence.

  1. AThey guarantee detection of all fraud
  2. BThey replace the auditor's need to document work
  3. CThey improve efficiency and consistency in testing large volumes of dataCorrect
  4. DThey make the auditor independent of the management's representations

Explanation

CAATs help test large data volumes efficiently and consistently. They cannot guarantee fraud detection, documentation is still required, and management representations remain part of evidence.

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