When an auditor tests a computerized accounting system,which of the following is true of the test data approach?
A) Test data are processed by the client's computer programs under the auditor's control.
B) Test data must consist of all possible valid and invalid conditions.
C) Testing a program at year end provides assurance that the client's processing was accurate for the full year.
D) Several transactions of each type must be tested.

Question

Quizplus · Accepted Answer

The test data approach involves the auditor processing test data through the client's computer programs under the auditor's control, in order to test the system's accuracy and completeness. Option B is not entirely true, as test data only needs to cover a reasonable range of possible conditions rather than all possible conditions. Option C is not true, as testing at year end does not necessarily provide assurance for the entire year. Option D is not necessary for all types of transactions and depends on the auditor's judgment of the level of risk associated with each transaction type.

When an Auditor Tests a Computerized Accounting System,which of the Following