A tax calculation program maintains several hundred tax
rates. The BEST control to ensure that tax rates entered
into the program are accurate is:
A. an independent review of the transaction listing.
B. a programmed edit check to prevent entry of invalid data.
C. programmed reasonableness checks with 20 percent data
entry range.
D. a visual verification of data entered by the processing
department.
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Answer: A
Tax rates represent critical data that will be used in
numerous calculations and should be independently verified
by someone other than the entry person before they are used
in processing. Choices B and C are programmed controls that
are useful for preventing gross errors, that is, errors such
as an added zero or alpha instead of a numeric. A tax table
must be 100 percent accurate, not just readable. Choice D
will allow the data entry person to check input accuracy,
but it is not sufficient.
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