The auditor's objective in determining whether the client's computer program correctly processes valid and invalid transactions is accomplished through the
A) test data approach.
B) generalized audit software approach.
C) microcomputer-aided auditing approach.
D) generally accepted auditing standards.

Question

Quizplus · Accepted Answer

The auditor's objective of determining whether the client's computer program correctly processes valid and invalid transactions can be achieved through the test data approach, which involves the creation of fictitious input data and comparing the program's output with the auditor's expected results. The generalized audit software approach and the microcomputer-aided auditing approach are more focused on analyzing entire populations of data, rather than testing individual transactions. The generally accepted auditing standards provide guidance for the auditor's overall approach to an audit but do not specifically address testing computer programs.

The Auditor's Objective in Determining Whether the Client's Computer Program