Sorry I'm not getting this.
Maybe you are oversimplifying?
From what I've read so far, it seems we are dealing with only 2 wires. I cannot understand why you don't simply probe them with a DMM.
What kind of "faults" are you expecting to find? From what I've read, it seems like a pass/fail with only 3 possible outcomes:
PASS: continuity, resistance as expected
FAIL: continuity, resistance too high or low
FAIL: open, no continuity
A DMM could tell you all of that, and also would adapt for conductor resistance (well, YOU would adapt for it, given conductor resistance is known).
So I'm left to assume there is a lot more to this scenario that you haven't divulged, that makes this make more sense. Am I right? Maybe there are several conductors, not just 2? If this is confidential, maybe you could just throw me a bone in a PM? or not, but some clue is missing here and I'm not sure this will be solved without it.