Which of the following would BEST indicate the integrity of individual transactions or data?

The best indication of the integrity of individual transactions or data is provided by substantive testing. Substantive testing involves direct verification of transactions and balances, ensuring that the recorded transactions are valid, accurate, and reflect the true state of the business activities. This testing typically includes procedures such as examining supporting documentation, recalculating figures, and confirming external evidence, which collectively help validate the integrity of the data being audited.

By focusing on direct evidence of transaction authenticity, substantive testing allows auditors to detect potential misstatements or errors in the financial records. This approach provides a high level of assurance regarding the accuracy of individual transactions and enhances the overall reliability of the financial statements.

In contrast, while compliance testing and control testing primarily assess whether processes and controls are functioning effectively or are aligned with regulations, they do not inherently address the accuracy or authenticity of individual transactions. Analytical testing involves evaluating financial information by studying plausible relationships among data but does not typically provide direct evidence regarding the integrity of specific transactions. Thus, substantive testing is the most effective method for indicating transaction integrity.