Final answer:
The audit approach described is known as auditing around the computer, which allows the auditor to independently verify the client's data processing without dealing with the system's programming logic.
Step-by-step explanation:
The audit approach in which the auditor runs his or her own program on a controlled basis to verify the client's data recorded in a machine language is known as auditing around the computer. This technique involves assessing the input data, processing the data independently, and then comparing the results with the outputs generated by the client's system. The intent is to ensure that the client's system is processing data correctly without necessarily understanding the complexities of the system's programming logic.The audit approach in which the auditor runs his or her own program on a controlled basis to verify the client's data recorded in a machine language is called embedded audit modules. These modules are programmed into the client's system and perform tests or checks on the data automatically. They can be used to verify data integrity, detect errors or fraud, and provide assurance on the accuracy of financial statements.