ACCA Audit and Assurance (F8) Practice Exam

How can audit software enhance the auditing process?

1. By providing automated financial statements

2. By assisting with the analysis of statistical data

3. By interrogating data files and comparing document versions

4. By generating random samples for testing

The correct answer is: By interrogating data files and comparing document versions

Using audit software can significantly streamline the auditing process, and one of its primary benefits is the ability to interrogate data files and compare document versions. This capability allows auditors to analyze large volumes of data efficiently and identify discrepancies or anomalies that might require further investigation. By examining the data in a more systematic way, auditors can ensure that the information presented in financial statements is correct and in compliance with applicable standards. Interrogating data files enables auditors to extract relevant information quickly, assess its accuracy, and provide insights into underlying transactions. The ability to compare document versions is also crucial, as it allows auditors to track changes, verify modifications, and ensure that the information used in the audit is the most up to date. This enhances the reliability of the audit findings and supports the overall integrity of the audit process. The enhanced analytical capabilities provided by audit software, particularly through data interrogation and document comparison, promote a more thorough and precise audit, ultimately leading to better decision-making and reporting outcomes.