Question
The BEST method of proving the accuracy of a system tax calculation is by:

A. detailed visual review and analysis of the source code of the calculation programs.
B. recreating program logic using generalized audit software to calculate monthly totals.
C. preparing simulated transactions for processing and comparing the results to predetermined results.
D. automatic flowcharting and analysis of the source code of the calculation programs.
Answers
Answer: C

Preparing simulated transactions for processing and comparing the results to predetermined results is the best method for proving accuracy of a tax calculation. Detailed visual review, flowcharting and analysis of source code are not effective methods, and monthly totals would not address the accuracy of individual tax calculations.   Your Comment




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