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. O 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.
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. O 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05df9044-3d2f-420f-9515-5f66b9d96da3%2F93d55b95-555a-4890-a6d9-2202c7aa8219%2Fvw5jyn_processed.png&w=3840&q=75)
Transcribed Image Text: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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