The auditor's objective in determining whether the client's automated controls can correctly handle valid and invalid transactions as they arise is accomplished through the:
A)test data approach.
B)generalized audit software approach.
C)microcomputer-aided auditing approach.
D)generally accepted auditing standards.

Question

Quizplus · Accepted Answer

The auditor's objective of determining whether the client's automated controls can correctly handle valid and invalid transactions as they arise is accomplished through the test data approach. This involves using test data to simulate typical transactions and then evaluating how the system processes those transactions.

The Auditor's Objective in Determining Whether the Client's Automated Controls