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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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa73bb8b6-ae95-4f11-ad49-4c64c8187f47%2Fcf54f1fe-b6b9-4890-b68a-4fe0c0a0f433%2Fz3fqhkd_processed.jpeg&w=3840&q=75)
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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