Test Data Approach
- 1. A White Box Testing Technique By: BSA – 5 NDMU SY. 2016-2017 Test Data Approach
- 2. • To define test data approach as one of the white box techniques used by auditors in a Computer Assisted Auditing Techniques. • To discuss the different approaches in conducting a test data. • To identify and discuss the types of test data. • To discuss the advantages and disadvantages of test data approach. Objectives:
- 3. • Test data involves auditor preparation of a series of fictitious transactions; many of those transactions will contain intentional errors. The auditor examines the results and determines whether the errors were detected by the client’s system. What is a Test Data?
- 4. • Based on auditors’ creation of input data that should be processed by client’s application. Test data consist of correct and incorrect data. If incorrect data is entered into the system, auditor expects the input rejection. Results of input procedures are compared with expected behavior of application in order to determine whether input controls are in place What is a Test Data?
- 5. •possible input error •logical process •irregularity Test transactions should test every
- 6. •Are control procedures functioning? •Is the computer application processing transactions correctly? Questions asked in test data:
- 7. Illustration of Test Data Approach Computer Operations Prepare Test Transactions And Results Auditors Computer Application System Computer Output Auditor Compares Transaction Test Data Manually Processed Results
- 8. • Using live data: process client real live data and then check that the controls and processing are OK. • Dummy data in a normal production run: however output of dummy data processing should not be released in the live database general ledger. • Dummy data in a special run: dummy data is run back up/ image copy of database. Approaches in Test Data
- 9. • BCSE (Base case system evaluation) - using a comprehensive set of test transactions • Tracing - performs an electronic walkthrough of the application’s internal logic Types of Test Data
- 10. • BCSE (Base Case System Evaluation)- Is A special case of test data that requires an all- inclusive set of test data in order to test every possible data and processing condition. This method is time-consuming and expensive, and best developed by an internal audit staff. Types of Test Data Cont.
- 11. • Tracing- Test data technique that takes step-by-step walk through application – The trace option must be enabled for the application – Specific data or types of transactions are created as test data – Test data is “traced” through all processing steps of the application, and a listing is produced of all lines of code as executed (variables, results, etc.) Types of Test Data Cont.
- 13. •Requires limited technical knowledge •Usually fairly simple to operate •Helps the auditor learn how the system operates. Advantages of Test Data:
- 14. • Cost: for constructing test data, predetermine the results manually and ascertaining which controls to be tested. • Confined to test of control only. • Live testing is dangerous as it may affect live database is used for special run. • No visible evidence of audit work performed: need to record in the working papers of work done. • It only confirms the operation of the program at the time that it is tested. Disadvantages of Test Data:
- 15. • http://opentuition.com/wp-content/blogs.dir/1/files/group- documents/15/1289480671- COMPUTERASSISTEDAUDITTECHNIQUES.pdf Distribute sign-up sheet • http://faculty.usfsp.edu/gkearns/Articles_Fraud/Principles%20of%20Co mputer%20Assisted%20Audit%20Techniques.pdf Explain how you can be reached to discuss concerns • http://www.ef.uns.ac.rs/mis/archive-pdf/2009%20- %20No1/MIS2009_1_2.pdf References:
- 17. • https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6 &cad=rja&uact=8&ved=0ahUKEwiNjqvlusfOAhVBLmMKHQY3AeoQFg g9MAU&url=http%3A%2F%2Fwww.wiley.com%2Fcollege%2Fbcs%2F 047138383X%2Fppt%2Fchapt10.ppt&usg=AFQjCNHYyzN8YI1eJt4RY 21vINrCMt7CYA&sig2=xoWqnzGp7sdCUzdPbjIrkw • https://opencourseware.kfupm.edu.sa/colleges/cim/acctmis/acct303/file s%5C2-Lecture_Notes_Chapter7-CAATTs.pdf • Accounting Information System by James Hall 5th Edition References: