IT Evidence - gathering procedures Flashcards
Define “integrated test facility (ITF).”
A fictitious division or department within the client created for the purpose of processing the “dummy” (test) data along with the client’s “live” data
Define “parallel simulation.”
The processing of the client’s actual data using the auditor’s software and then comparing the auditor’s output to the client’s output for agreement
Define “tagging transactions.”
The process of adding an electronic tagging to specific client transactions and tracing them through the client’s system
What is data mining software?
Commercially available software (such as ACL or Idea) used to access a client’s electronic data and perform a broad range of audit tasks (such as performing analytical procedures and sampling for confirmation work, etc.)
What is the purpose of test data procedures?
To process known errors to see if the client’s system catches them. The auditor only needs to include those errors that are important to the auditor (i.e., the auditor need not include every possible type of error). There may be a danger of contaminating the client’s database with the test data.
Define “customized audit software.”
Programs specifically written to access the files of a particular client. The cost might be modest, but the benefits are limited to the specific client for whom the software was written.
Define “generalized audit software.”
Audit software designed to access and test data files of many audit clients. Such audit software is not unique to a specific audit client. Such software is usually expensive to develop, but that cost can be spread over many audit clients. The cost per client may justify the large initial cost of development.
