The Purpose of Test Data Is to Determine Whether

question 31

Multiple Choice

The purpose of test data is to determine whether

• A) the audit team's test data are consistent with the client's normal transactions.
• B) controls operate as described in responses to internal control questionnaire items and program flowcharts.
• C) every possible error is prevented or detected by the client's computer controls.
• D) all possible combinations of valid data are correctly processed.

---

Definitions:

Local Taxes

Taxes imposed by local government entities, such as municipalities or counties, including property taxes, sales taxes, and income taxes at the local level.

Federal Taxes

Taxes imposed by the federal government on income, corporate profits, and goods and services.

Civil Law Remedy

A legal solution provided through the court system to resolve disputes, compensate damages, or ensure restitution in non-criminal matters.

Mississippi Valley

A region in the United States surrounding the Mississippi River, known for its significant historical and geographical features.