Question

When testing a computerized accounting system, which of the following is false regarding the test data approach?

1) The test data need to consist of only those valid and invalid conditions in which the auditor is interested.
2) Only one transaction of each type needs be tested.
3) Test data are processed by the entity's computer programs under the auditor's control.
4) The test data must consist of all possible valid and invalid conditions.

Answer 1

The false statement regarding the test data approach is that the test data must consist of all possible valid and invalid conditions. The test data need to consist of only those valid and invalid conditions in which the auditor is interested. Additionally, only one transaction of each type needs to be tested, and the test data are processed by the entity's computer programs under the auditor's control.

Step-by-step explanation:

When testing a computerized accounting system, the false statement regarding the test data approach is that the test data must consist of all possible valid and invalid conditions. The test data need to consist of only those valid and invalid conditions in which the auditor is interested. Additionally, only one transaction of each type needs to be tested, and the test data are processed by the entity's computer programs under the auditor's control.