The accuracy and completeness of the general ledger update process can be tested y comparing the accounts receivable balance before the update, the total debits and credits to the accounts receivable account in the sales transaction file, and the accounts receivable balance after the update. What does this process use?
A) Check digit analysis
B) Control total analysis
C) Validity analysis
D) Hash total analysis

Question

Quizplus · Accepted Answer

The process described in the question is an example of control total analysis, which involves verifying that the total of a certain field in a group of related transactions matches a predefined total. In this case, the predefined total is the beginning balance plus the debits minus the credits, which should equal the ending balance after the update. The other options (check digit analysis, validity analysis, and hash total analysis) are not applicable to this scenario.

The Accuracy and Completeness of the General Ledger Update Process