AICPA Exam CPA-Auditing Topic 1 Question 7 Discussion

Choice 'b' is correct. Proper approval of overtime by supervisors is least likely to be used by the auditor in a 'test data' test of controls because it is information generally not recorded in the computer.

Choices 'a', 'c', and 'd' are incorrect. Test data is data (with a predetermined result) that is run through the client's computer system. The auditor creates one transaction of each type of valid and invalid conditions in which the auditor is interested and runs them through the client's processing system. The following are recorded in the computer and are likely candidates for 'test data' tests of controls.

A . Missing employee numbers.

C . Time tickets with invalid job numbers.

D . Agreement of hours per clock card with hours on time tickets.