Final answer:
A walkthrough, also known as transaction tracing, is a process where each step of a transaction in a system is verified to confirm compliance with the system's design, ensuring consistent processing and effective controls.
Step-by-step explanation:
The act of tracing a transaction through each step of the system to ensure that transactions are processed as indicated by the flowchart is called walkthrough or transaction tracing. This process involves verifying each phase of the transaction to ensure it complies with the designed system. It's a critical component of system auditing, where the auditor or user confirms that transactions are handled consistently and according to the standards set forth by the system's design.
During a walkthrough, the individual will follow the transaction from the initial input through processing and to the final output stage, checking that the proper controls are in place and working effectively. This may include reviewing relevant documentation, observing the processes in action, and interviewing appropriate personnel. If every transaction follows the same path, the system is said to have a consistent processing cycle, whereas if transactions take different paths, this indicates a variable processing cycle.