Describe and contrast the test data method with the integrated test facility.

Question

What will be an ideal response?

Answer 1

In the test data method, a specially prepared set of input data is processed; the results of the test are compared to predetermined expectations. To use the test data method, a copy of the current version of the application must be obtained. The auditor will review printed reports, transaction listings, error reports, and master files to evaluate application logic and control effectiveness. The test data approach results in minimal disruption to the organization's operations and requires little computer expertise on the part of auditors.

The integrated test facility (ITF) is an automated approach that permits auditors to test an application's logic and controls during its normal operation. ITF databases contain test records integrated with legitimate records. During normal operations, test transactions are entered into the stream of regular production transactions and are processed against the test records. The ITF transactions are not included with the production reports but are reported separately to the auditor for evaluation. The auditor compares ITF results against expected results.

In contrast to the test data approach, the ITF technique promotes ongoing application auditing and does not interfere with the normal work of computer services employees. In the test data approach, there is a risk that the auditor might perform the tests on a version of the application other than the production version; this cannot happen in the ITF approach. Both versions are relatively costly to implement. The major risk with the ITF approach is that ITF data could become combined with live data and the reports would be misstated; this cannot happen in the test data approach.

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