Acca aaa s21 Notes

1.2. Test data
Test data
is used to investigate the operation of clients’ programs. The auditor designs 'dummy' data 
that is then processed by the client’s programs. This enables the auditor to check whether or not the 
clients’ programs are operating correctly and as expected, and whether or not the various controls 
which were supposed to be present are actually operating. For example, what happens if a dispatch is 
entered for a zero quantity or for a non-existing product or for a non-existing customer, or would raise 
the balance on the customer’s account to above the credit limit? Test data would be designed to 
check that the controls are present. There would be some normal error-free items, some unusual 
items and some extreme or unexpected items.
The auditor should predict what the client’s program should do and then compare those predictions 
with what the client’s program actually produces. A problem with test data is that the auditor is 
processing dummy data. Therefore it is usual for test data to be run using copies of files (ie 'dead')
Audit programs
Examine client
data
Test data
Tests client 
programs
1.3. Embedded audit facilities
Integrated Test Facilities or a System Control and Review File ('SCARF') are permanent audit modules 
within the accounting system. During the accounting period certain transactions are also recorded in 
these files for later examination by the auditor. For example, large journal entries, large returns and so 
on. It can be difficult to discover these at the end of the period in a normal accounting system 
because they will be buried amongst routine transactions and might have been cleared from the files. 
The review files should be encrypted and locked so that only the auditor can access the information 
on them.
September 2021 to June 2022 exams
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