The procedures to test effectiveness of control policies and procedures in support of a lower assessment of control risk are called:
A) analytical tests.
B) tests of controls.
C) a walk- through.
D) tests of transactions.

Question

Quizplus · Accepted Answer

The procedures to test effectiveness of control policies and procedures in support of a lower assessment of control risk are called tests of controls. Analytical tests are used to evaluate the reasonableness of account balances, while a walk-through involves tracing a transaction through the entire system to evaluate the effectiveness of controls. Tests of transactions involve testing individual transactions to determine if they were processed accurately.

The Procedures to Test Effectiveness of Control Policies and Procedures