What is the purpose of transaction testing?

The purpose of transaction testing is primarily to validate the continuity of business transactions. This testing process involves examining specific transactions to ensure that they comply with established standards, regulations, and operational protocols. By focusing on the continuity aspect, transaction testing helps to confirm that business processes are functioning as intended and that there are no disruptions that could affect the integrity of transactions or financial reporting.

Transaction testing plays a crucial role in identifying errors or inconsistencies that could lead to financial losses or compliance issues. It ensures that transactions are recorded accurately and that the necessary controls are in place to prevent fraud, errors, or inefficiencies. In this way, it supports the ongoing operational health of a business by confirming that transactions flow steadily and correctly through the system, thereby maintaining business continuity.