An internal auditor is using computer-assisted audit techniques to examine employee expenses across several divisions of the organization. Which of the following is true in this situation?

The correct answer is B. Fraud detection techniques should be performed against full data populations. In internal auditing, the use of Computer-Assisted Audit Techniques (CAATs) allows auditors to analyze large datasets efficiently and effectively. When it comes to fraud detection, analyzing the full population of data is often the best approach.

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Question

Options

AThe data from various sources should remain segregated for easier analysis and discovery of
BFraud detection techniques should be performed against full data populations.
CA reactive approach is best suited for fraud detection due to the effectiveness of tips and
DRandom sampling is an effective method of detecting fraudulent transactions.

How the community answered

(32 responses)

A
3% (1)
B
75% (24)
C
9% (3)
D
13% (4)

Explanation

In internal auditing, the use of Computer-Assisted Audit Techniques (CAATs) allows auditors to analyze large datasets efficiently and effectively. When it comes to fraud detection, analyzing the full population of data is often the best approach.

Topics

#computer-assisted audit techniques#fraud detection#full population testing#expense analysis

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