What does it mean to tag transactions for testing an IT environment?
This is a form of CAAT testing, which is when the audit team audits through the computer. Basically, the audit team will create a fictitious sale in the system and then follow it through the system and make sure that the transaction is properly treated in the system.
For example, if you were auditing a sunglass store, you would go into the sunglass store and have them process a transaction for you and then subsequently issue a refund. This would allow you to trace the sale and refund transactions through the system!
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What is a test data approach?
This is a form of CAAT testing, which is when the audit team audits through the computer. “Test data approach” will consist of the auditor processing data with the client’s computer by creating fake transactions which are used to test program control procedures. Each control will be tested once.
What is the embedded audit module approach?
This is a form of CAAT testing, which is when the audit team audits through the computer. The “Embedded audit module approach” is an approach that will assist auditors with audit calculations by enabling continuous monitoring in the audit environment. A known weakness to the embedded audit approach is that it requires implementation in a […]
What is CAAT?
CAAT stands for “computer assisted audit techniques”. This basically means that the audit team performs audit testing through the computer rather than going around the computer. Some common forms of CAAT include test data approach, embedded audit module approach, tagging transactions, and parallel simulation.