One approach to audit through the computer to test controls is to
A)reprocess live data with generalized audit software.
B)trace outputs to source documents to ensure documents have been processed correctly.
C)use simulated data in an audit program to determine if similar controls are being used.
D)reprocess live data and have the auditor compare the output with the previous output.

Question

Quizplus · Accepted Answer

Reprocessing live data with generalized audit software is a commonly used approach to test controls in a computerized environment. This approach involves extracting a sample of data from the live system, processing it through the audit software, and comparing the output of the software with the original output of the system. The purpose of this approach is to identify any discrepancies between the two outputs and to ensure that the system is functioning correctly and the controls are effective. Tracing outputs to source documents (option B) is a manual approach that can be time-consuming and is less efficient than using audit software. Option C, using simulated data, is not as effective as using live data because it does not accurately reflect real-world processing conditions. Option D, comparing the current output with previous output, does not provide an independent assessment of the controls and may not detect any issues that have arisen since the previous audit.

One Approach to Audit Through the Computer to Test Controls