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CMA Intermediate · Corporate Accounting and Auditing · Application of Technology in Audit and Audit Trail

Which computer-assisted audit technique involves the auditor writing or using a program to extract from the client's sales file all invoices above Rs 5,00,000 for further examination?

The technique is audit software. It reads the client's actual data files and extracts records meeting set criteria, such as invoices above Rs 5,00,000, for further testing. Test data and integrated test facilities work by submitting dummy transactions instead of analysing real files.

  1. ATest data
  2. BIntegrated test facility
  3. CAudit softwareCorrect
  4. DParallel simulation of manual vouching

Explanation

Audit software, such as generalised audit software or specially written programs, processes the client's data files to select, summarise or analyse records. Extracting high-value invoices is a classic use. Test data instead submits dummy transactions to the client's program.

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