Test Data Approach

A White Box Testing TechniqueBy: BSA – 5 NDMU SY. 2016-2017

Test Data Approach

• To define test data approach as one of the white box techniques used by auditors in a Computer Assisted Auditing Techniques.• To discuss the different approaches in

conducting a test data.• To identify and discuss the types of test data.• To discuss the advantages and disadvantages

of test data approach.

Objectives:

• Test data involves auditor preparation of a series of fictitious transactions; many of those transactions will contain intentional errors. The auditor examines the results and determines whether the errors were detected by the client’s system.

What is a Test Data?

• Based on auditors’ creation of input data that should be processed by client’s application. Test data consist of correct and incorrect data. If incorrect data is entered into the system, auditor expects the input rejection. Results of input procedures are compared with expected behavior of application in order to determine whether input controls are in place

What is a Test Data?

•possible input error•logical process•irregularity

Test transactions should test every

•Are control procedures functioning?• Is the computer application processing transactions correctly?

Questions asked in test data:

Illustration of Test Data Approach

Computer Operations Prepare Test

TransactionsAnd Results

Auditors

ComputerApplication

System

ComputerOutput

Auditor Compares

TransactionTest Data

Manually Processed

Results

• Using live data: process client real live data and then check that the controls and processing are OK.

• Dummy data in a normal production run: however output of dummy data processing should not be released in the live database general ledger.

• Dummy data in a special run: dummy data is run back up/ image copy of database.

Approaches in Test Data

•BCSE (Base case system evaluation) - using a comprehensive set of test transactions•Tracing - performs an electronic walkthrough of the application’s internal logic

Types of Test Data

• BCSE (Base Case System Evaluation)- Is A special case of test data that requires an all-inclusive set of test data in order to test every possible data and processing condition. This method is time-consuming and expensive, and best developed by an internal audit staff.

Types of Test Data Cont.

• Tracing- Test data technique that takes step-by-step walk through application– The trace option must be enabled for the

application– Specific data or types of transactions are created

as test data– Test data is “traced” through all processing steps

of the application, and a listing is produced of all lines of code as executed (variables, results, etc.)

Types of Test Data Cont.

Illustration of Tracing

•Requires limited technical knowledge•Usually fairly simple to operate•Helps the auditor learn how the system operates.

Advantages of Test Data:

• Cost: for constructing test data, predetermine the results manually and ascertaining which controls to be tested.

• Confined to test of control only. • Live testing is dangerous as it may affect live database is

used for special run. • No visible evidence of audit work performed: need to record in

the working papers of work done.• It only confirms the operation of the program at the time that

it is tested.

Disadvantages of Test Data:

• http://opentuition.com/wp-content/blogs.dir/1/files/group-documents/15/1289480671-COMPUTERASSISTEDAUDITTECHNIQUES.pdf Distribute sign-up sheet

• http://faculty.usfsp.edu/gkearns/Articles_Fraud/Principles%20of%20Computer%20Assisted%20Audit%20Techniques.pdf Explain how you can be reached to discuss concerns

• http://www.ef.uns.ac.rs/mis/archive-pdf/2009%20-%20No1/MIS2009_1_2.pdf

References:

• https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwiNjqvlusfOAhVBLmMKHQY3AeoQFggeMAA&url=http%3A%2F%2Fwww.jsu.edu%2Fccba%2Ffea%2Ffaculty%2Fzanzig%2F301%2F301_ch_13.ppt&usg=AFQjCNFo5D9zkpScMPOwI0VT7fi67n-5ZQ&sig2=wXaDG_2Jpf0PaKmncu1u3Q

• https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwiNjqvlusfOAhVBLmMKHQY3AeoQFgglMAE&url=http%3A%2F%2Fwww.usfsp.edu%2Fgkearns%2FACG6936%2Fppt%2Fch03.ppt&usg=AFQjCNEEiOdtULmjHLXBjt_EBM8NQtdegQ&sig2=5xwcH_qDI1984LfSxvSXww

References:

• https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&cad=rja&uact=8&ved=0ahUKEwiNjqvlusfOAhVBLmMKHQY3AeoQFgg9MAU&url=http%3A%2F%2Fwww.wiley.com%2Fcollege%2Fbcs%2F047138383X%2Fppt%2Fchapt10.ppt&usg=AFQjCNHYyzN8YI1eJt4RY21vINrCMt7CYA&sig2=xoWqnzGp7sdCUzdPbjIrkw

• https://opencourseware.kfupm.edu.sa/colleges/cim/acctmis/acct303/files%5C2-Lecture_Notes_Chapter7-CAATTs.pdf

• Accounting Information System by James Hall 5th Edition

References: