Final answer:
An integrated test facility is a method used by auditors to test both computer programs and the manual operations of an AIS within its operational setting, by integrating a fictitious set of data into the system without disturbance. The correct answer to the given question is option c).
Step-by-step explanation:
An integrated test facility (ITF) is a method used in the auditing of computerized Accounting Information Systems (AIS) where a fictitious set of records is integrated into the system. The purpose of this technique is to test both the programs and the manual operations of an AIS in an operational setting, without disrupting the normal system operations. By using an ITF, the auditor can verify that the system processes data correctly and that the proper controls are in place. An integrated test facility tests the functionality and the effectiveness of the controls within both computer-based and manual components of the system, which may include input controls, processing controls, and output controls.
Option c) is the correct answer since an ITF is designed to ensure that both the computer programs and the manual operations are functioning correctly within the actual operational environment of the AIS.