Question

Which of the following computer-assisted auditing techniques inserts an audit module in the client's application system to identify specific types of transactions?

A) parallel simulation testing
B) test data approach
C) embedded audit module
D) generalized audit software testing

Answer 1

The computer-assisted auditing technique using an audit module inserted into the client's application system to identify transactions is the embedded audit module approach. It enables real-time monitoring and is ideal for large transaction volumes.

Step-by-step explanation:

The computer-assisted auditing technique that inserts an audit module in the client's application system to identify specific types of transactions is known as the embedded audit module approach.

This method allows auditors to continuously monitor system transactions in real time as they process and check for anomalies or specific types of transactions without having to disrupt the normal operation of the system.

The embedded audit module is part of the client's application system, and it is particularly useful for large volumes of transactions where continuous review is needed.

The correct answer is C) embedded audit module. The embedded audit module is a computer-assisted auditing technique that involves inserting an audit module into the client's application system.

This module is designed to identify specific types of transactions that may require further investigation or analysis. It allows auditors to monitor and evaluate the client's system in real-time, helping to ensure the accuracy and reliability of financial information.