Final answer:
An auditor uses the IT test data method to verify the effectiveness of application controls within a program, ensuring they manage data accurately and reliably.
Step-by-step explanation:
An auditor will use the IT test data method to gain certain assurances with respect to the application controls contained within the program. This process involves evaluating how well the program's controls are managing the data input, processing, and output.
By using this method, the auditor can check for the accuracy and reliability of the system's controls in a simulated environment that mirrors actual operating procedures.Utilizing test data allows for a systematic approach and is an example of applying empirical evidence to verify the effectiveness of application controls.
Conducting such tests ensures that auditors provide an in-depth analysis of the system, correlating their findings with expectations and standards prescribed by a code of ethics. It enables the detection and debunking of potential issues that may otherwise go unnoticed without disrupting the live environment.
Therefore, the correct answer is C) Application controls contained within the program.