Auditing With the Computer: Test Data Approach and Parallel Simulation. Salus Populi, SA, of Pesaro, Italy, processes payroll for numerous employees through one large payroll program, which is changed frequently. Because there are a number of divisions and job categories, the applicable input validation controls (edit controls) for a particular division or department are stored in a computer file utilized as part of a general validation routine before transactions may be processed. Annualized wage rates are kept in another file and are called by the application program according to job codes.

Required

A. Discuss how the auditor might use the test data approach in auditing the payroll data generated by Salus Populi’s computer system.

B. Discuss how the auditor might use parallel simulation in auditing the payroll data generated by Salus Populi’s computer system.

C. Assume that the auditor is concerned with the operation of the input validation controls.