ADVANTAGES OF TEST DATA

TECHNIQUES
1.Employ through-the-computer testing, thus
providing the auditor with explicit evidence
concerning application functions.

2.Test data runs can be employed with only minimal

disruption if properly planned.

3. They require only minimal computer expertise on

the part of auditors.
 DISADVANTAGES OF TEST DATA
TECHNIQUES
1. Auditors must rely on computer services
personnel to obtain a copy of the application for test
purposes.
2. Provide a static picture of application integrity at a
single point in time.

3. Relatively high cost of implementation which

results in audit inefficiency.
ITF Techniques
 INTEGRATED TEST FACILITY

●It is an automated technique

that enables the auditor to test an
application's logic and controls
during its normal operation.
 ADVANTAGES OF INTEGRATED
TEST FACILITY
1. ITF supports ongoing monitoring of
controls.

2. Application with ITF can be economically tested

without disrupting the user's operations and
without the intervention of computer services
personnel.
DISADVANTAGE OF INTEGRATED TEST
FACILITY
1. Potential for corrupting the data files of
the organization with test data.

REMEDY:
A. Adjusting entries may be processed to remove the
effects of ITF from general ledger account balances.

B. Data files can be scanned by special software that

remove the ITF transactions
PARALLEL SIMULATION

●It requires auditor to write a

program that simulates key features
on processes of the application under
review.
●The stimulated application is then
used to reprocess transactions that
were previously processed by the
production application.
PARALLEL SIMULATION TECHNIQUE