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Data analytics in audit is BEST positioned to:
AEliminate the requirement of professional scepticism
BBe a substitute for understanding the entity
CTest entire populations rather than samples
DReplace the need for materiality assessment
Answer & Solution
Correct answer: D. Replace the need for materiality assessment
1. Data analytics enables the auditor to interrogate the full population of transactions.
2. Sampling becomes one of several techniques rather than the default.
3. Materiality, scepticism, and entity understanding remain mandatory under SAs.
_Source: ICAI BoS CA Final Paper 3, Ch 4 "Special Aspects of Auditing in an Automated Environment"_
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