Well, a defect can remain "latent" in an application until it is discovered. Therefore I can assume that latent testing is testing for defects that have here-to-fore not been uncovered, even in previous releases. It would seem to be referring to a type of exploratory testing which might find bugs which would not normally be found in a formal testing methodology.
I hope that I never am expected to know this. And I don't think I would bet a job on it, but I would explain that it is not a globally accepted terminology. I do remember James Bach mentioning something like "Latent Testing" in one of his blogs though.
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No he did not told any thing.May be he himself not confirmed about it.
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Whenever I'm in an interview, and I'm asked about a term I haven't heard before, I always seek to understand the term before I answer the question. That way, I'm not making a guess or a bad assumption about what that term means to that particular interviwer.
Over the years, I've learned that people and companies often have "local" definitions of many terms.