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The BEST method of proving the accuracy of a system tax
calculation is by:

A. detailed visual review and analysis of the source code of
the calculation programs.

B. recreating program logic using generalized audit software
to calculate monthly totals.

C. preparing simulated transactions for processing and
comparing the results to predetermined results.

D. automatic flowcharting and analysis of the source code of
the calculation programs.

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Answer Posted / guest

Answer: C

Preparing simulated transactions for processing and
comparing the results to predetermined results is the best
method for proving accuracy of a tax calculation. Detailed
visual review, flowcharting and analysis of source code are
not effective methods, and monthly totals would not address
the accuracy of individual tax calculations.

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