What is the best method for confirming the accuracy of a system tax calculation?

The best method for confirming the accuracy of a system tax calculation is preparing simulated transactions and comparing results. This approach allows for practical testing of the system's functionality by creating controlled scenarios that reflect real-world transactions. By inputting a variety of scenarios, such as different item prices, types of transactions, and applied rates, the results from the tax calculation can be directly compared to expected outputs based on manual calculations or known standards.

Using simulated transactions provides a clear and tangible method of verifying that the tax calculation logic in the system is functioning correctly across various circumstances. It helps identify any inconsistencies or errors in how the system processes tax calculations, ensuring compliance with regulations and accuracy in financial reporting. This method also supports a thorough validation process, revealing flaws that might be missed through theoretical analysis or a review of the source code alone.

In contrast, reviewing and analyzing source code might provide insights into how the calculation is coded, but it does not confirm if the logic is applied correctly in practice or account for any unforeseen issues during execution. Recreating program logic with generalized audit software can help understand the system's workings, but it may not provide a complete validation path for the actual output. Automatic flowcharting of the source code, while useful for visualization, does not serve