An audit team was scheduled to conduct the year-end physical verification of inventory at a client’s warehouse. However, due to unexpected travel…

CA Final · Advanced Auditing, Assurance and Professional Ethics · RTP · May 2026
An audit team was scheduled to conduct the year-end physical verification of inventory at a client’s warehouse. However, due to unexpected travel restrictions and safety guidelines, the auditors are unable to visit the warehouse in person. To avoid delay in completing the audit, the client proposed the use of Augmented Reality (AR)-enabled devices to enable the auditor to observe inventory remotely. Which of the following options correctly explains how Augmented Reality (AR) would assist the auditor in this situation?
(A) It allows users to view the real-world environment with added elements, generated by digital devices.
(B) It is step forward and replaces the real world entirely with a simulated environment, created through digitally generated images, sounds, and even touch and smell.
(C) With a help of this, the user can explore a simulated world or simulate experiences such as flying or skydiving.
(D) It captured audit information which can be combined with various alternative sources of information to optimise quality of deliverables, consolidate audit information and enhance the execution speed while ensuring correctness and completeness of data.

Suggested Answer and Working Notes:

Correct Answer: Option (A)

It allows users to view the real-world environment with added elements, generated by digital devices.

Topics: Audit Evidence

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