An auditor is using 'generalized audit software' (GAS) to extract data from a client's system. Which of the following is the primary advantage of using GAS?

Answer options:

It eliminates the need for professional skepticism.

It allows the auditor to access and test 100% of the population independently of the client's IT staff.

It replaces the need for understanding internal controls.

It guarantees the detection of all fraud.

How to approach this question

GAS benefits: Independence (don't need client to run reports) and Volume (can test everything).

Full Answer

B.It allows the auditor to access and test 100% of the population independently of the client's IT staff.✓ Correct

It allows the auditor to access and test 100% of the population independently of the client's IT staff.

Generalized Audit Software (GAS) enables the auditor to access client data directly and perform tests (like recalculations, stratifications, or gap detection) on 100% of the population, rather than a sample. It also reduces reliance on client staff to generate reports, enhancing independence.

Common mistakes

Thinking software replaces judgment or control understanding.

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