B is corrent because the auditor, when using test data, prepares a set of dummy transactions to determine if the controls purported to be in effect in a program are functioning as intended.
A is incorrect and a nonsense reply because there is certainly no reason to expect the auditor"s test data to be normally distributed on any meaningful measure.
C is incorrect because overall output (e.g., a payroll journal) is not directly tested; only the controls in effect are tested. Note that the parallel simulation method tests validity of output more directly.
D is incorrect because the controls, not the accuracy of input data, are being directly tested—the auditor is the one preparing the input data.
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