Question

Most grocery stores use bar code scanning technologies that interface with cash registers used to process customer purchases. Cashiers use the scanners to read bar code labels attached to each product, which the system then uses to obtain unit prices, calculate transaction totals, including sales taxes, and update perpetual inventory databases. Similarly, cashiers scan bar codes on coupons or member discount cards presented by the customer to process discounts. Along with the scanning technologies, groceries use point-of-sale technologies that allow customers to swipe debit and credit cards for payment, while still maintaining the ability for customers to pay with cash. Read the requirements. Requirement c. How might an auditor use technology to test the operating effectiveness of a bar code scanner based check-out system? (Select all that apply.) A. The auditor may be able to use audit software to test the accuracy of the postings of daily totals to the client's general ledger system. B. The auditor may use audit software to review all unit prices in the price list master file to identify unusual price amounts for further investigation (e.g., negative prices, large unit prices, etc.) O C. The auditor may be able to use audit software to identify the most recent date of sale by product number to identify those products that have not been sold to customers for an extended period of time to identify potentially obsolete inventory still on hand. D. The auditor could select a number of different products and use the bar scanning technology to process the sales amounts for comparison to the auditor's separate calculation of transaction amounts based on items processed. The auditor could perform the same kind of test using coupons and other discount programs. E. The auditor may be able to use audit software to test the accuracy of individual customer transactions and to test the summation of all customer transactions processed by cash register machine, by day, and by store.

Answer 1

OPTION   D Is correct

Please find below explanation useful

Auditor is sole responsible in the verifying the internal controls of the company at every level of business process

Hence auditor use his entire knowledge to draw conclusions whether company prepared financial statements true and fair or not

In this question it is noted that sales are the important part in the business of client

Auditor might use different set of software to check the effectives of the client billing processing systems.to ensure everything is fair

Auditor may use a special audit software called CAATTS software to check the flow the date using some sample date inserting process

And

Auditor may use the concepts of

TEST OF CONTROLS

Where it contains

Reperformance

Observation

Inspection

TEST OF DETAILS

It uses the concept all the information provided is correct and properly posted are not in the all the areas of financial statements

IN current situation the option D will be right answer as auditor using test controls to check the various discount aspects, sale programme related stuff

Hence OPTION D WILL BE MORE APPROTIPRIATE TO THIS QUESTION