[ahsq]

In parallel simulation, actual client data is reprocessed using an auditor software program. An advantage of using parallel simulation, instead of performing tests of controls without a computer, is that:
A.

the test includes all types of transaction errors and exceptions that may be encountered.
B.

the client’s computer personnel do not know when the data is being tested.
Incorrect C.

there is no risk of creating potentially material errors in the client’s data.
D.

the size of the sample can be greatly expanded at relatively little additional cost.

Ninja’s answer is D. which is the benefit definition of an audit software.

Thru Becker I thought that Parallel simulation does NOT affect client data because CPA run’s it on CPA’s computer to reach result to compare with client’s result?

Am I wrong?

[ahsq]

does anyone know the answer? JEFF?

[benboccio]

How is there risk of creating a material error in the client's data if you are using a copy of the data?

AUD - 90
BEC - 83
FAR - 87
REG - 87

NINJA 4EVER

[Anonymous]

@ahsq If the auditor were to test internal controls without a computer, the additional cost of retrieving samples would be higher. In practice, whenever IT is used in audits the data can usually (although not always) be tested on a 100% basis through the use of technology. Becker's explanation, “once the auditor has created the software program, it takes little effort to reprocess additional transactions. Manual tests, on the other hand, must be applied separately to each individual transaction, making it more costly to increase sample size”

[Author]

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