Answer (D) is correct . The primary use of generalized audit software (GAS) is to select and summarize a client’s records for additional testing. These packages permit the auditor to audit through the computer; to extract, compare, analyze, and summarize data; and to generate output for use in the audit. They allow the auditor to exploit the computer to examine many more records than otherwise possible with far greater speed and accuracy. Hence, GAS facilitates analysis of all sources of potential error. However, concurrent auditing techniques are not included because they must be incorporated into the client’s systems. For example, embedded audit data collection is a transaction selection approach incorporated within the regular production programs to routinely extract transactions meeting certain criteria for further testing. In effect, it provides a window through which the auditor can access the process.
Answer (A) is incorrect because Dubious transactions can be immediately identified and reported to the auditor (rather than the user) for review and investigation, without waiting for the scheduled audit.
Answer (B) is incorrect because Embedded audit modules and the like compensate for the loss of the traditional paper audit trail.
Answer (C) is incorrect because Dubious transactions can be immediately identified and reported to the auditor (rather than the user) for review and investigation, without waiting for the scheduled audit.
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