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CS Professional · Internal and Forensic Audit · Internal Audit Tools and Techniques

Under a continuous auditing approach at Deccan Retail Ltd, the auditor embeds a module in the sales application that copies transactions meeting preset criteria, such as discounts above 25%, to a separate audit file as they are processed. This technique is best described as:

It is an embedded audit module, where code inside the live application captures transactions meeting preset criteria into an audit file as they occur. This supports continuous auditing, unlike test data, dummy entity testing or parallel simulation, which do not capture live exceptions in real time.

  1. ATest data method
  2. BIntegrated test facility with dummy entity
  3. CParallel simulation
  4. DEmbedded audit module (system control audit review file type) capturing transactions in real timeCorrect

Explanation

An embedded audit module within the live application selects and records transactions meeting set criteria during processing, enabling continuous monitoring. Test data uses dummy inputs, an integrated test facility uses a fictitious entity, and parallel simulation reprocesses real data on the auditor's own program.

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