The test data approach requires the auditor to insert an audit module in the client's application system to test how transaction data is processed.

Question

Quizplus · Accepted Answer

The statement correctly describes the test data approach, which involves creating specific test data and inserting it into the client's application system to analyze how the system processes transactions. This approach helps auditors to identify errors, weaknesses, and potential fraud in the system.

The Test Data Approach Requires the Auditor to Insert an Audit