CAF-8 · Chapter 6 · Question 7 of 10
Which of the following describes the use of 'Test Data' as a Computer-Assisted Audit Technique (CAAT)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The auditor feeding a sample of dummy data (including intentional errors) through the client's IT system to see if the system's controls reject the errors.
Explanation
Test data involves the auditor inputting dummy data into the client's live system (or a safe copy) and comparing the processing results against predetermined expectations. It is specifically used to test the operating effectiveness of application controls.
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