Business Glossary

procedure applied to a sample within a population. For example, it might examine supporting evidence for half of promotion and entertainment expenses or send out confirmations for 75% of accounts receivable. The purpose of an audit test is to assure that no material exceptions are included in the sample. Audit tests are also applied in microcomputer applications to assure that the accounting software package is processing data correctly. A "dummy file" with predetermined manual results is processed by the computer to see if the computerized result is the same as the manually determined figure.