Auditing through the computer can be helpful in testing controls in case of complex IT systems. In auditing through the computer, a very popular technique is called the test data technique. The test data technique involves using a set of hypothetical transactions to audit programmed checks and program logic. This applies for both transactional as well as non-transactional processing programs. Some of the benefits of the test data technique is that it is simple, does not require much time and also does not require the auditor to be an expert in information technology.

Thus an application software or ERP used by a company may contain many modules which tie back to business processes. In test data technique, the auditor tries to test the program logic and program checks using test data. So to test say the sales commmision paid to marketing employees, auditor will simulate a setof test transactions using test data. The results thrown up by the software can be matched with manually calculating the results. If both of them tie back, then the test is successful. Many auditors have found the test data technique very useful in concluding on application accuracy and processing logic. Test data technique is thus a good way of testing application internal controls.

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