A new algebraic system, Test Algebra (TA), is proposed for identifying faults in combinatorial testing for SaaS (Software-as-a-Service) applications. In the context of cloud computing, SaaS is a new software delivery model, in which mission-critical applications are composed, deployed, and executed on cloud platforms. Testing SaaS applications is challenging because new applications need to be tested once they are composed, and prior to their deployment. A composition of components providing services yields a configuration providing a SaaS application. While individual components in the configuration may have been thoroughly tested, faults still arise due to interactions among the components composed, making the configuration faulty.When there are k components, combinatorial testing algorithms can be used to identify faulty interactions for t or fewer components, for some threshold 2 ≤ t ≤ k on the size of interactions considered. In general these methods do not identify specific faults, but rather indicate the presence or absence of some fault. To identify specific faults, an adaptive testing regime repeatedly constructs and tests configurations in order to determine, for each interaction of interest, whether it is faulty or not. In order to perform such testing in a loosely coupled distributed environment such as the cloud, it is imperative that testing results can be combined from many different servers. The TA defines rules to permit results to be combined, and to identify the faulty interactions. Using the TA, configurations can be tested concurrently on different servers and in any order. The results, using the TA, remain the same.