You are a partner with information systems audit expertise in a firm of external auditors. Because of your scintillating personality, you win the audit of a medium-size manufacturing firm that has just gone public.

Subsequent to the controls review and during the planning of the substantive tests, the manager on the job approaches you about his intention to use test data to determine whether the accounting software used by the manufacturing firm contains any material defects. The manager is concerned because he has encountered problems with the manufacturing firm's information systems manager. When he informed the information systems manager that he intended to use test data to test the accounting software, she ridiculed him, claiming that he was proposing a pointless exercise. She argued that all the accounting software had been purchased as generalized packages from several well-known software vendors. She also argued that the manufacturing firm did not carry out any software development, implementation, and maintenance work. Indeed, she was the only information systems professional employed by the firm, and her job was to keep the firm's systems running smoothly. In short, she had responsibility for planning and operations. Thus, there was no risk that the software had been modified. She threatens that she will inform her managing director that the auditors are wasting money if your manager proceeds with using test data.

Required: To avert an impending disaster with your client, how would you now proceed? In particular, address the question of whether the audit manager should proceed with using test data for evidence-collection purposes. Explain your reasons for your recommendation.