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What is the difference between TRANSACTION CYCLE APPROACH and Directional Testin

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › What is the difference between TRANSACTION CYCLE APPROACH and Directional Testin

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by MikeLittle.
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  • September 14, 2014 at 8:35 pm #194951
    abdullahzafar
    Participant
    • Topics: 31
    • Replies: 65
    • ☆☆

    What is the difference between TRANSACTION CYCLE APPROACH and Directional Testing Approach?

    September 16, 2014 at 6:29 am #195100
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23318
    • ☆☆☆☆☆

    Hi Abdul

    Directional testing works on the basis that if you check all the debits then, following double entry principles, all the credits must be ok

    Transaction cycle approach works on the basis that the processing of every transaction is sub-divisible into discrete stages, but the accumulation of these stages results in the proper recording of that transaction

    Is that enough?

    November 1, 2014 at 8:27 pm #207134
    abdullahzafar
    Participant
    • Topics: 31
    • Replies: 65
    • ☆☆

    Thanks mike.

    November 6, 2014 at 4:28 pm #208033
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23318
    • ☆☆☆☆☆

    You’re welcome

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