Skip to content

CS Professional · Internal and Forensic Audit · Internal Audit of Specific Functions

A company's payroll is processed by software. The internal auditor prepares dummy employee records with known inputs, runs them through the live system, and compares the output with results she computed independently. Which technique is this?

This is the test data technique. The auditor feeds dummy transactions with known expected results into the live system and compares outputs with independent calculations. Parallel simulation differs because it reprocesses real entity data using an auditor-controlled program.

  1. ATest data techniqueCorrect
  2. BGeneralised audit software extraction
  3. CEmbedded audit module
  4. DParallel simulation using the entity's own data file

Explanation

Submitting auditor-prepared dummy transactions with predetermined expected results to the entity's system is the test data technique. Parallel simulation uses the auditor's own program to reprocess actual data, which is not what is described here.

Did you get it right without looking?

One question tells you little. A timed set on Internal Audit of Specific Functions shows your real accuracy, how long you take and where you lose marks.

Practise Internal Audit of Specific FunctionsFree diagnostic mock

More Internal Audit of Specific Functions questions