AICPA Exam CPA-Auditing Topic 3 Question 55 Discussion

Choice 'b' is correct. An integrated test facility runs test transactions through the 'live' system and posts to simulated (dummy) files to provide an auditor with information about the operating effectiveness of controls.

Choice 'a' is incorrect. Controlled reprocessing of transactions is a less common term used for parallel processing where the auditor writes a program to 'reprocess' some or all of the client's live data. It does not involve the use of simulated files.

Choice 'c' is incorrect. Input validation is a general description of any test that ensures that the input was accurate. It does not involve the use of simulated files.

Choice 'd' is incorrect. Program code checking is the review of the client's program source code by a qualified auditor/IT specialist. It does not involve the use of simulated files.