When an Auditor Tests the Internal Controls of a Computerized

question 706

Multiple Choice

When an auditor tests the internal controls of a computerized accounting system, which of the following is true of the test data approach?

• A) Test data are coded to a dummy subsidiary so they can be extracted from the system under actual operating conditions.
• B) Test data programs need not be tailor-made by the auditor for each client's computer applications.
• C) Test data programs usually consist of all possible valid and invalid conditions regarding compliance with internal controls.
• D) Test data are processed with the client's computer and the results are compared with the auditor's predetermined results.

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