Data Reconciliation Across Financial Systems CT-FT Practice Questions (Page 5)

Questions 21–25

1. 21foundation · easy

   What is the primary benefit of performing data reconciliation in a financial system?

   • AIt reduces the storage space required for financial data.
   • BIt ensures that data is consistent and accurate across different systems, reducing the risk of financial errors.
   • CIt eliminates the need for data governance policies.
   • DIt increases the speed of data processing by optimizing database queries.
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

   Why is the selection of appropriate matching fields critical for accurate reconciliation?

   • ABecause matching fields determine the storage size of the database.
   • BBecause matching fields control user access permissions.
   • CBecause matching fields are used to encrypt data during transfer.
   • DBecause using non-unique or inconsistent fields can lead to false matches or missed discrepancies.
   Reveal Solution Discussion Select an answer first
4. 23application · medium

   A tester is designing a reconciliation process between a customer relationship management (CRM) system and a billing system. The CRM uses a 10-digit customer ID, while the billing system uses a 12-digit account number that includes a prefix. The tester needs to match records between the two systems. What is the most appropriate approach?

   • AUse a fuzzy matching algorithm to match records based on customer name
   • BUse the account number as the matching key and ignore the customer ID
   • CUse the customer ID as the matching key and ignore the account number
   • DDefine a mapping between the customer ID and the account number and use both as matching keys
   Reveal Solution Discussion Select an answer first
5. 24expert · hard

   A company's reconciliation process frequently flags mismatches because the same customer is represented with slightly different names in different systems (e.g., 'John Smith' vs 'John A. Smith'). The tester is asked to improve the matching accuracy without compromising the ability to detect real discrepancies. Which approach is most appropriate?

   • AIgnore name differences and match only on account numbers
   • BUse a fuzzy matching algorithm on customer names as the primary matching key
   • CStandardize customer names across all systems to a single canonical format
   • DManually review all mismatches to determine if they are real
   Reveal Solution Discussion Select an answer first
6. 25foundation · easy

   What is the role of a target system in the data reconciliation process?

   • ATo receive and store data from source systems for comparison and analysis.
   • BTo validate data at the point of entry.
   • CTo generate original financial transactions.
   • DTo provide the authoritative record for all financial data.
   Reveal Solution Discussion Select an answer first