Which of the following is clearly a test of controls?
A)Walk-through of the expense cycle from performance of the service to the reporting in the balance sheet.
B)Examination of a sample of purchase order records for electronic,authenticated,authorization.
C)Observing the controller's use of company owned equipment.
D)Sending a letter to the client's attorney to determine litigation that is pending between plaintiff and the defendant.

Question

Quizplus · Accepted Answer

Examining a sample of purchase order records for electronic, authenticated authorization is clearly a test of controls as it is designed to test whether the control procedures in place relating to purchase orders are operating effectively. The other options are not tests of controls as they do not relate to assessing the effectiveness of control procedures.

Which of the Following Is Clearly a Test of Controls