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Sando Corporation has numerous customers. A customer file is kept on disk storage. Each customer file contains name, address, credit limit, and account balance. The auditor wishes to test this file to determine whether credit limits are being exceeded. The best procedure for the auditor to follow would be to.... Select one: a. Request a printout of a sample of account balances so they can be individually checked against the credit limits. b. Develop a program to compare credit limits with account balances and print out the details of any account with a balance exceeding its credit limit. c. Request a printout of all account balances so they can be manually checked against the credit limits. d. Develop test data that would cause some account balances to exceed the credit limit and determine if the system properly detects such situations.

Sando Corporation has numerous customers. A customer file is kept on disk storage. Each customer file contains name, address, credit limit, and account balance. The auditor wishes to test this file to determine whether credit limits are being exceeded. The best procedure for the auditor to follow would be to.... Select one: a. Request a printout of a sample of account balances so they can be individually checked against the credit limits. b. Develop a program to compare credit limits with account balances and print out the details of any account with a balance exceeding its credit limit. c. Request a printout of all account balances so they can be manually checked against the credit limits. d. Develop test data that would cause some account balances to exceed the credit limit and determine if the system properly detects such situations.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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17. Please answer asap!!!
Sando Corporation has numerous customers. A customer file is kept on disk storage. Each customer file contains name, address, credit limit, and account balance. The auditor wishes to test this file to determine whether credit limits are being exceeded. The best procedure for the auditor to follow would be to.... Select one: a. Request a printout of a sample of account balances so they can be individually checked against the credit limits. b. Develop a program to compare credit limits with account balances and print out the details of any account with a balance exceeding its credit limit. c. Request a printout of all account balances so they can be manually checked against the credit limits. d. Develop test data that would cause some account balances to exceed the credit limit and determine if the system properly detects such situations. O
Transcribed Image Text:Sando Corporation has numerous customers. A customer file is kept on disk storage. Each customer file contains name, address, credit limit, and account balance. The auditor wishes to test this file to determine whether credit limits are being exceeded. The best procedure for the auditor to follow would be to.... Select one: a. Request a printout of a sample of account balances so they can be individually checked against the credit limits. b. Develop a program to compare credit limits with account balances and print out the details of any account with a balance exceeding its credit limit. c. Request a printout of all account balances so they can be manually checked against the credit limits. d. Develop test data that would cause some account balances to exceed the credit limit and determine if the system properly detects such situations. O
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