What is true regarding the use of Computer-Assisted Audit Techniques (CAATs)?

The selection identifies a critical aspect of Computer-Assisted Audit Techniques (CAATs) as they can indeed lower audit risk for any test being performed. CAATs allow auditors to efficiently analyze large volumes of data, providing a comprehensive overview that might be difficult to obtain through traditional methods. By leveraging technology, auditors can detect anomalies, trends, or patterns that could indicate risk areas, thereby enhancing the overall effectiveness of the audit process.

When accurately applied, CAATs can improve the reliability of audit results. They enable auditors to perform more extensive testing and sampling, thereby reducing the risk of overlooking significant issues that could impact the financial statements or organizational compliance. The ability to carry out more thorough analyses not only helps in identifying areas of potential fraud or error but also strengthens the auditor's conclusions and recommendations.

In the context of the other options, they either underestimate CAATs' capabilities or provide misleading information. For instance, while some may find the implementation of CAATs can require training or setup time, they typically lead to efficiencies in the long run, thus not increasing the overall time needed for audit completion as suggested. Additionally, CAATs extend beyond just data analysis; they can assist in various audit tasks, including compliance testing and risk assessment. Lastly