D is corrent. Destructive updating in an online computer system is destructive of transaction files. Accordingly, auditing of the balances in accounts where transactions are periodically destroyed requires a well-documented audit trail for the auditor.
A is incorrect because the auditor will require more than the periodic dumping of files to audit balances in an online computer system in an environment of destructive updating. Although a periodic dumping may be part of an audit trial, it would not be necessary.
B is incorrect because an integrated test facility describes tests of controls through utilization of actual or dummy transactions. Therefore, it is not a test of balances.
C is incorrect because year-end utilization of audit hooks would not be feasible as transaction files would have been destroyed during the year. Audit hooks describe a method of retaining selected or all transaction files for the auditor. Audit hooks have to be utilized during the year (i.e., prior to destruction of the transaction files to be feasible).
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