ADA Data Analytics Techniques & Tools 2

Question 1

An auditor applies Benford's Law to a vendor invoice population. Which first digit should appear most frequently in a naturally occurring dataset?

Accepted Answer

1

Answer

Benford's Law predicts the digit 1 appears as the leading digit about 30.1% of the time.

Question 2

Which population is LEAST suitable for Benford's Law first-digit testing?

Accepted Answer

Assigned employee ID numbers

Answer

Assigned or sequential identifiers are not naturally occurring magnitudes, so Benford's distribution does not apply.

Question 3

A gap test on sequentially numbered sales invoices is primarily designed to detect what?

Accepted Answer

Missing or unrecorded documents

Answer

Gap testing identifies breaks in a numeric sequence that may indicate missing, voided, or unrecorded documents.

Question 4

Before analyzing a client-provided GL extract, an auditor compares the total debits and record count to the client's trial balance. What is this procedure called?

Accepted Answer

Data reconciliation to verify completeness

Answer

Reconciling control totals and record counts to an independent source confirms the extract is complete and accurate.

Question 5

Which join type returns all records from the vendor master file plus matching records from the payments file, leaving unmatched vendors with blank payment fields?

Accepted Answer

Left outer join

Answer

A left outer join keeps every record from the left (primary) table and only matching records from the right table.

ADA - Audit Data Analytics Certification Practice Test

ADA - Audit Data Analytics Certification Practice Test

ADA Data Analytics Techniques & Tools 2