The audit team made a copy of the client's sales and billing program early in the audit.Several times during the audit,the team used this copy of the program to process actual client data.The output of the secured program was compared to that of the client's system.This audit technique would be considered
A) Generalized audit software.
B) Parallel simulation.
C) Test data.
D) Tagging transactions.

Question

Quizplus · Accepted Answer

This audit technique is called parallel simulation, where the auditor uses a copy of the client's program to process actual client data, and then compares the output with the client's system. This helps the auditor to verify the accuracy of the client's system by running the same data through an independent program. Therefore, the correct answer is B) Parallel simulation. The other options, such as generalized audit software, test data, and tagging transactions are different audit techniques that are not applicable in this scenario.

The Audit Team Made a Copy of the Client's Sales