IIA-CIA-PART2 · Question #144
An organization s inventory is stored m multiple warehouses. During an inventory audit which of the following activities would most benefit from the use of computerized audit tools?
The correct answer is C. Valuating the obsolete Inventory from all the warehouse locations. During an inventory audit, the activity that would most benefit from the use of computerized audit tools (CAATs) is valuating the obsolete inventory from all the warehouse locations. CAATs can efficiently analyze large volumes of inventory data from multiple warehouses…
Question
An organization s inventory is stored m multiple warehouses. During an inventory audit which of the following activities would most benefit from the use of computerized audit tools?
Options
- AVerifying the existence of inventory items in each warehouse
- BAssigning the tolerable deviation rate to determine the sample size
- CValuating the obsolete Inventory from all the warehouse locations
- DConfirming that the purchased items are recorded In the correct period
How the community answered
(50 responses)- A4% (2)
- B18% (9)
- C70% (35)
- D8% (4)
Explanation
During an inventory audit, the activity that would most benefit from the use of computerized audit tools (CAATs) is valuating the obsolete inventory from all the warehouse locations. CAATs can efficiently analyze large volumes of inventory data from multiple warehouses, identify patterns and trends, and automate the valuation process, making it more accurate and less time- consuming compared to manual methods.
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