integrated test facility

Quick Reference

An embedded audit facility consisting of program, code, or additional data provided by the auditor and incorporated into the computer element of the client’s accounting system. Using ITF, a fictitious entity is created, for example a customer, within the context of the regular application. Transactions are then posted to the fictitious entity together with regular transactions and the results produced by the normal processing cycle are then compared with predetermined results. Such entries should be reversed at defined cut-off dates to ensure that they are not included in the financial reports. ITF enables an auditor and the client’s management to check continuously on the internal processing functions. See also computer-assisted audit techniques; systems control and review file.

Subjects: Accounting.

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