ACCA · Question 12 · Audit Evidence

SECTION A - CASE 3: AQUAPURE UTILITIES

AquaPure Utilities is a highly regulated public utility company managing water and waste services. You are auditing the financial statements for the year ended 31 March 20X6.

During the audit, you note the following:

1. AquaPure has a large internal audit (IA) department that recently completed a review of the procurement controls.
2. The billing system is highly automated, generating millions of micro-invoices based on smart meter readings.
3. The company owns a vast network of underground water pipes, which are difficult to physically verify.
4. You plan to use substantive analytical procedures to audit water revenue.

Question:
To test the highly automated billing system, the audit team decides to use Computer Assisted Audit Techniques (CAATs), specifically 'Test Data'. What is the primary purpose of using Test Data in this scenario?