Final answer:
The integrated test facility in auditing computer-based systems refers to integrating the testing of both computer and manual controls within the actual production environment. This allows auditors to evaluate the system's functionality and controls during normal operations, which is option B for the question provided.
Step-by-step explanation:
In auditing computer-based systems, the integrated test facility (ITF) is a technique where a set of test data is interspersed with live data and processed together with the usual data processing activities. The objective of this approach is to assess the proper functioning and effectiveness of the computer application's controls. Specifically, the ITF integrates testing within the actual production environment, rather than simulating or creating a separate, parallel testing system. This allows the auditor to evaluate both computerized and manual system controls under normal operation conditions.
The correct answer to the question is: B) Integrates the testing of both computer and manual controls within the same environment. This explanation excludes option A, which suggests creating a separate testing environment, option C, which limits the scope to security controls only, and option D, which implies that such testing is exclusively automated. The ITF is a key part of assessing whether the application performs effectively and whether control procedures are operating as intended.