Final answer:
Continuous auditing is a strategy that allows evidence obtained in prior audit periods to support conclusions about IT application controls in the current period. It involves using automated tools and techniques to continuously gather and analyze data from IT systems.
Step-by-step explanation:
The audit testing strategy that can be used to allow evidence obtained in prior audit periods to support a conclusion about IT application controls in the current audit period is known as continuous auditing.
In continuous auditing, auditors use automated tools and techniques to continuously gather and analyze data from IT systems. This allows them to assess the effectiveness of controls in real time and provide assurance on the reliability of financial information.
For example, auditors can use continuous auditing to monitor user access controls in an IT system. By analyzing the logs of user activities, they can detect any unauthorized access or suspicious activities.