How is a defect reported?

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Once the test cases are developed using the appropriate techniques, they are executed which is when the bugs occur. It is very important that these bugs be reported as soon as possible because, the earlier you report a bug, the more time remains in the schedule to get it fixed.
Simple example is that you report a wrong functionality documented in the Help file a few months before the product release, the chances that it will be fixed are very high. If you report the same bug few hours before the release, the odds are that it won’t be fixed. The bug is still the same though you report it few months or few hours before the release, but what matters is the time.
It is not just enough to find the bugs; these should also be reported/communicated clearly and efficiently, not to mention the number of people who will be reading the defect. 

Defect tracking tools (also known as bug tracking tools, issue tracking tools or problem trackers) greatly aid the testers in reporting and tracking the bugs found in software applications. They provide a means of consolidating a key element of project information in one place. Project managers can then see which bugs have been fixed, which are outstanding and how long it is taking to fix defects. Senior management can use reports to understand the state of the development process.

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