nerdexam
Isaca

CISA · Question #271

An IS auditor has been tasked with analyzing an organization's capital expenditures against its repair and maintenance costs. Which of the following is the BEST reason to use a data analytics tool for

The correct answer is D. It enables the auditor to work with 100% of the transactions.. Data analytics tools are best utilized in audits to analyze the entire population of transactions, rather than just a sample.

Submitted by rachelw· Apr 18, 2026Information Systems Auditing Process

Question

An IS auditor has been tasked with analyzing an organization's capital expenditures against its repair and maintenance costs. Which of the following is the BEST reason to use a data analytics tool for this purpose?

Options

  • AIt reduces the sample size required to perform the audit.
  • BIt improves the reliability of the data.
  • CIt reduces the error rate.
  • DIt enables the auditor to work with 100% of the transactions.

How the community answered

(59 responses)
  • A
    2% (1)
  • B
    7% (4)
  • C
    3% (2)
  • D
    88% (52)

Why each option

Data analytics tools are best utilized in audits to analyze the entire population of transactions, rather than just a sample.

AIt reduces the sample size required to perform the audit.

Data analytics tools typically allow for analysis of a larger dataset, often the entire population, thereby potentially eliminating the need for sampling or reducing the risk associated with sample size limitations, not primarily reducing the sample size itself.

BIt improves the reliability of the data.

While data analytics can highlight data quality issues, the tool itself does not inherently improve the reliability of the source data; it merely processes what is provided.

CIt reduces the error rate.

Data analytics tools can help identify errors within the data, but they do not inherently reduce the original error rate of the transactions being analyzed.

DIt enables the auditor to work with 100% of the transactions.Correct

Data analytics tools enable auditors to analyze 100% of the transactions, providing a complete view and identifying anomalies or trends that might be missed in a sample, which significantly enhances the scope and depth of the audit.

Concept tested: Benefits of data analytics in auditing

Topics

#Data Analytics#Audit Tools and Techniques#Population Testing#Transaction Analysis

Community Discussion

No community discussion yet for this question.

Full CISA Practice