CMA Final · Cost and Management Audit · Information Systems Security Audit
During an audit of a firm's ERP, the auditor wants to test whether application controls correctly reject invalid data, using the company's live programs with fabricated transactions that are processed alongside real ones and later reversed. Which technique is this?
This is an integrated test facility. Fictitious transactions are processed through the live system together with genuine ones, and the output is compared with predetermined results to check that application controls work. Parallel simulation instead reprocesses real data using the auditor's own program.
- AIntegrated test facilityCorrect
- BParallel simulation
- CEmbedded audit module reviewing log files
- DGeneralised audit software extraction of the master file
Explanation
An integrated test facility sets up a dummy entity in the live system so that test transactions are processed with real data and their results compared with expected outcomes. Parallel simulation uses auditor-written programs on real data, and the others examine existing data rather than inserting test items.
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