• When using the test data method:

		The results of the test are compared to predetermined results.
		Performs an electronic walk through of the applications internal logic.
		Involves an audit module designed into the application with dummy or test records integrated among legitimate records.
		Creating a program that does what the application program does. Transactions are reprocessed and the parallel simulation results are compared to the actual application results.
		Involves a module embedded into the application program that selects transactions for further testing.

2 points

QUESTION 7

• Which of the following statements is true?

		The black box approach to testing application controls is essentially auditing around the computer.
		The white box approach audits through the computer and tests the application logic directly.
		Both are true.
		Both are false.