Computer Assisted Audit Technique Essay

The canvass entropy proficiency is primarily designed to test the effectiveness of the internal control procedures which are incorporated in the thickenings reckoner broadcast. The objective of the test entropy proficiency is to determine whether the clients computer programs can correctly handle valid and invalid conditions as they arise.To accomplish this objective the scrutinizeor prepares test selective information (fictitious transactions) that consist of valid and invalid conditions. The auditor enters the test information into the system and have the data processed by the entitys computer programs. Since the auditor is the one who crates the test data, the auditor knows what the output should savour like assuming the clients computer programs is functioning effectively. The auditor then compares the processing results with his regulate output. If the output generated by the clients program is the same as the auditors anticipate output, the auditor may conclude that the clients program is reliable.A dis proceeds of the test data technique is that the auditor does not have an assurance that the program tested is the same program apply by the client throughout the accounting process. . In order to overcome this disadvantage, the test data technique can be extended to an integrated test facility (ITF)An integrated test facility (ITF) creates a fictitious entity in a database to process test transactions simultaneously with live input. It can be used to incorporate test transactions into a normal production run of a system. Its advantage is that periodic testing does not require separate test processes. However, careful planning is necessary, and test data must be isolated from production data. Integrated test facility is considered a useful audit tool during an IT audit because it uses the same programs to compare processing using independently calculated data. This involves setting up dummy entities on an application system and processing test o r production data against the entity as a means of verifying processing accuracy.When using ITF, the auditor must be alert to the insecurity of contaminating the clients master file. Thus, care must be taken to reverse or eliminates the effects of all audit test transactions in order to avoid contamination of clients computer files.Parallel SimulationThe test data and ITF methods both process test data through real programs. With parallel simulation, the auditor processes real client data on an audit program similar to some aspect of the clients program. The auditor compares the results of this processing with the results of the processing done by the clients program.