You are the project manager of GHT project.
During the data extraction process, you evaluated the total number of transactions per year by multiplying the monthly average by twelve.
This process of evaluating total number of transactions is known as?
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A. B. C. D.D.
Reasonableness tests make certain assumptions about the information as the basis for more elaborate data validation tests.
Incorrect Answers: A: The duplicate test does not identify duplicate transactions; rather it identifies and confirms the validity of duplicates.
B: The control total test does not ensure that all transactions have been extracted, but only ensures that the data are complete.
C: As compared to simplistic, the reasonableness test is a valid foundation for more elaborate data validation tests.
The process of evaluating the total number of transactions per year by multiplying the monthly average by twelve is known as the Reasonableness Test. This test is a form of analytical review that involves examining financial data to determine whether the figures being reported are reasonable, given the context of the organization's operations.
The Reasonableness Test is commonly used in financial audits and project management to ensure that reported figures are accurate, complete, and consistent. It involves comparing current and historical data, industry benchmarks, and other relevant factors to determine whether the reported figures are reasonable.
In the context of the GHT project, the Reasonableness Test is being used to evaluate the total number of transactions per year. This involves taking the monthly average of transactions and multiplying it by twelve to arrive at an estimated annual total. The purpose of this test is to ensure that the estimated annual total is reasonable given the context of the project's goals, objectives, and operations.
In contrast to the Reasonableness Test, the other options listed in the question are not relevant to the process of evaluating the total number of transactions per year. The Duplicates Test is used to identify and eliminate duplicate records in a database or other data source. Controls Total refers to the sum of all control activities in an organization's internal control system. Simplistic and ineffective is not a relevant term in this context.