The checksum algorithm is fairly simple: line 32150 sums the products of all character positions and character codes, and lines 32160-32180 does a modulus to convert them to printable characters. The multiply-by-position bit is clever because it allows the checksum to flag transposed characters. ISBN-10 uses a similar scheme[2].
[1] https://www.atarimagazines.com/software/displayfile.php?file...