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.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter11: Accounting For Transactions Using A General Journal

Section: Chapter Questions

Problem 1AFE

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Sandol 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: a. Develop test data that would cause some account balances to exceed the credit limit and determine if the system properly detects such situations. O b. Request a printout of a sample of account balances so they can be individually checked against the credit limits. c. Request a printout of all account balances so they can be manually checked against the credit limits. O d. 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.
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