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

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.

View Answer

Answer: C

Explanation:

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.