Question

Which of the following computer-assisted auditing techniques allows fictitious and real transactions to be processed together without client operating personnel being aware of the testing process?

1) Parallel simulation
2) Integrated test facility
3) Embedded audit module
4) Test data approach

Answer 1

The Integrated Test Facility (ITF) is a computer-assisted auditing technique that allows fictitious and real transactions to be processed together without client operating personnel being aware of the testing process.

Step-by-step explanation:

The computer-assisted auditing technique that allows fictitious and real transactions to be processed together without client operating personnel being aware of the testing process is 2) Integrated test facility.

The Integrated Test Facility (ITF) is a method where the auditor uses a separate program to process test data that is combined with the client's live data. This allows for the testing of the client's system without interrupting their normal operations.

For example, an auditor may use the ITF approach to process test transactions through the client's system, monitoring the results to identify any discrepancies or errors. The client's operating personnel may not be aware that they are processing both real and fictitious transactions, as they are blended together during the testing process.