When conducting field work for a physical inventory, auditors cannot perform which of the following steps using a generalized audit software package?
a.Recalculating balances in inventory reports.
b.Analyzing data resulting from inventory.
c.Observing inventory.
d.Selecting sample items of inventory.
Answer:C
Choice "C" is correct. A generalized audit software package (GASP) is used to perform tests directly on a client's system. Since observing inventory involves personal observations made by the auditor, and is unrelated to the client's system, a GASP would not be useful in this regard.
Choice "d" is incorrect. Generalized audit software packages (GASPs) are used to perform tests directly on a client's system. Tasks typically performed by GASPs include selecting items that meet specified criteria.
Choice "b" is incorrect. Generalized audit software packages (GASPs) are used to perform tests directly on a client's system. Tasks typically performed by GASPs include performing statistical analysis of data.
Choice "a" is incorrect. Generalized audit software packages (GASPs) are used to perform tests directly on a client's system. Tasks typically performed by GASPs include recalculating amounts and totals.
