The technique of creating a minicompany with fictitious master file records to process simulated data simultaneously with actual client data is referred to as a(n)
A) Sample audit review file.
B) Integrated test facility.
C) Systems control audit review file.
D) Program analysis software.

Question

Quizplus · Accepted Answer

The technique described is commonly known as an Integrated Test Facility (ITF). It involves setting up a small company or entity with fictitious records to process simulated data alongside actual client data. This allows auditors to test the effectiveness and accuracy of the system without impacting live data. A sample audit review file refers to a subset of actual client data used for testing, while a Systems Control Audit Review File (SCARF) is a file used for auditing purposes. Program analysis software is a tool used to analyze software code.

The Technique of Creating a Minicompany with Fictitious Master File