When an auditor tests the internal controls of a computerized accounting system, which of the following is true of the test data approach? A. Test data are coded to a dummy subsidiary so they can be extracted from the system under actual operating conditions. B. Test data programs need NOT be tailor-made by the auditor for each client's computer applications. C. Test data programs usually consist of all possible valid and invalid conditions reguarding compliance with internal controls. D. Test data are processed with the client's computer and the results are compared with the auditor's predetermined results.

Question

When an auditor tests the internal controls of a computerized accounting system, which of the following is true of the test data approach?

A. Test data are coded to a dummy subsidiary so they can be extracted from the system under actual operating conditions.

B. Test data programs need NOT be tailor-made by the auditor for each client's computer applications.

C. Test data programs usually consist of all possible valid and invalid conditions reguarding compliance with internal controls.

D. Test data are processed with the client's computer and the results are compared with the auditor's predetermined results.

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