Question

An auditor will use the IT test data method in order to gain certain assurances with respect to the?

1) Input data
2) Machine capacity
3) Application controls contained within the program
4) Degree of keypunching accuracy

Answer 1

An auditor uses the IT test data method to gain assurances mainly about the application controls within a program, which ensure the integrity of transaction processing, rather than machine capacity, the mere input data, or keypunching accuracy.

Step-by-step explanation:

An auditor will use the IT test data method primarily to gain assurances with respect to the application controls contained within the program. This approach involves the use of test data that an auditor inputs into the client’s system to determine if the system’s controls are functioning appropriately. These application controls can range from data validation routines to complex processing logic that ensures the integrity of the transaction processing.

Machine capacity refers to the physical capabilities of the computer systems and is not typically tested using the IT test data method. Input data is certainly important, and while test data does involve inputting data into a system, the focus here is on testing the controls rather than just the input data itself. The degree of keypunching accuracy impacts data quality but would be considered part of input controls that might be tested during this process.