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CMA Final · Cost and Management Audit · Information Systems Security Audit

An auditor reviewing a payroll application wants to verify that the program logic computes deductions correctly, by processing the auditor's own fictitious employee records through the live program and comparing results with independently pre-calculated outputs. This computer-assisted audit technique is known as:

The technique is test data. The auditor prepares fictitious records with pre-calculated results, processes them through the program and compares the outputs to confirm that the logic works properly. Parallel simulation, embedded modules and file extraction analyse real data or monitor live transactions instead.

  1. AIntegrated test facility with parallel simulation
  2. BTest data techniqueCorrect
  3. CEmbedded audit module
  4. DGeneralised audit software extraction of the payroll master file

Explanation

In the test data technique, the auditor prepares dummy transactions with known expected results, runs them through the program and compares outputs. Parallel simulation uses the auditor's own program on real data, and an embedded module monitors live transactions. Software extraction analyses actual file data rather than testing program logic with prepared inputs.

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