What Is the Test Data Technique

question 26

Multiple Choice

What is the test data technique?

• A)It uses a set of input data to validate system integrity.
• B)It requires auditors to prepare both valid and invalid data to examine critical logics and controls of the system.
• C)It is an automated technique that enables test data to be continually evaluated during the normal operation of a system.
• D)"It uses a set of input data to validate system integrity" and "It requires auditors to prepare both valid and invalid data to examine critical logics and controls of the system" are correct.
• E)None of the choices are correct.

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Definitions:

Borrowers

Individuals or entities that take out loans from financial institutions or other sources, committing to repay them over a specified period, often with interest.

Lenders

Individuals, organizations, or institutions that provide funds to borrowers under the agreement that the funds will be repaid with interest at a later date.

Fixed Incomes

Financial incomes that are set at a particular figure and do not fluctuate in the short term, such as bonds or pensions.

High Inflation

A period during which prices for goods and services rise excessively, eroding purchasing power.