Definition of Computer-Assisted Audit Techniques (CAATs):
CAATs use software tools to perform audit tasks such as data analysis, testing transactions, and evaluating internal controls.
Obtaining accurate and relevant data is a key first step, as it forms the basis of any analysis performed using CAATs.
Explanation of Answer Choices:
A. Writing the system audit program: This is part of audit planning but not a specific feature of CAATs.
B. Verifying internal controls: While CAATs can be used to test controls, obtaining data is fundamental to this process.
C. Obtaining appropriate data: Correct. CAATs rely on accurate, relevant, and complete data for meaningful analysis.
D. Purchasing data mining software: While software is a tool for CAATs, the focus is on using data, not on acquiring the software itself.
References:
Information Systems Audit and Control Association (ISACA),Guide to Computer-Assisted Audit Techniques.
Association of Government Accountants (AGA),Data Analytics and Auditing Best Practices.
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