What is the main goal of conducting transaction testing in a fraud examination?

The main goal of conducting transaction testing in a fraud examination is to validate the authenticity of transactions. This involves reviewing and examining specific transactions to ensure they are legitimate and comply with established policies and regulations. By verifying transactions, investigators can identify discrepancies, unauthorized transactions, or potential fraudulent activity, enabling them to assess the integrity of financial records and operational processes.

Transaction testing provides critical evidence that helps to establish whether fraud has occurred. It allows fraud examiners to confirm the accuracy of records and the legitimacy of the underlying activities. Understanding the authenticity of transactions is fundamental to uncovering fraud, as fraudulent transactions often show signs of irregularity or manipulation.

In contrast, reducing overall operational costs focuses on efficiency and financial performance, which is not the primary objective of fraud examinations. Analyzing employee job performance is concerned with assessing effectiveness in roles, while assessing customer satisfaction relates to understanding the experiences of customers and their views on the service or product provided. None of these other options align closely with the specific aim of validating transaction authenticity in the context of a fraud examination.