What is base case system evaluation?
Base case system evaluation is a special case of test data that requires an all-inclusive set of test data in order to test every possible data and processing condition. This method is time-consuming and expensive and best developed by an internal audit staff.
What is the difference between test data and integrated test facility?
Integrated test facility is a variation of test data technique. The main difference is that instead of checking information system while not in use, simulated data are added to client’s real data and processed simultaneously.
What is parallel simulation in auditing?
Parallel simulation is a process of simulating data processing with a set of data (from client) and comparing the results of simulation with that of client’s system results.
Why does CPA use test of data?
Audit test data is used to test the existence and effectiveness of controls built into an application program used by an audit client. As such, dummy transactions are processed through the client’s computerised system.
What is the purpose of integrated test facility?
An integrated test facility (ITF) creates a fictitious entity in a database to process test transactions simultaneously with live input. ITF can be used to incorporate test transactions into a normal production run of a system. Its advantage is that periodic testing does not require separate test processes.
Why would a CISA prefer the usage of an integrated test facility ITF )?
Explanation: An integrated test facility creates a factitious entity in the database to process test transactions simultaneously with live input. Its advantage is that periodic testing does not require separate test processes.
What is continuous and intermittent simulation?
A new computer auditing technique called Continuous and Intermittent Simulation (CIS), is introduced. CIS is an auditing technique that simulates the instruction execution of the application at the time the application is processing a transaction.
What are the limitations of test checking?
Disadvantages of Test Checking
- No Scientific Approach: It is a traditional auditing technique where no scientific approach is used in selecting the samples, hence the results drawn on it tends to be incorrect.
- Risk cannot be measured: It is not possible to measure the amount of risk involved.
What is meant by internal check in auditing?
: an accounting procedure whereby routine entries for transactions are handled by more than one employee in such a manner that the work of one employee is automatically checked against the work of another for detection of errors and irregularities.