The audit team made a copy of the client's sales and billing program early in the audit.Several times during the audit,the audit team used this copy of the program to process actual client data.The output of the secured program was compared to that of the client's system.This audit technique would be considered
A) generalized audit software.
B) parallel Simulation.
C) test data.
D) tagging transactions.

Question

Quizplus · Accepted Answer

The audit technique described in the scenario is parallel simulation, where the audit team uses a copy of the client's program to process actual client data and then compares the output to that of the client's system. Generalized audit software is a tool used to perform data analysis on large data sets. Test data is a type of audit evidence where known data is processed through a system to test its accuracy. Tagging transactions involves identifying specific transactions for further review or analysis. None of these audit techniques describe the scenario presented in the question, which is parallel simulation.

The Audit Team Made a Copy of the Client's Sales