The audit test that would normally be regarded as a test of controls is:
A) enquiries of third parties
B) test of the specific items making up the balance in a given general ledger account.
C) test of the additions to property, plant, and equipment by physical inspections.
D) test of the signatures on purchase orders to a list of approved signatories.

Question

Quizplus · Accepted Answer

Testing the signatures on purchase orders against a list of approved signatories is a test of controls. It verifies that the company's internal control procedures regarding authorization for purchases are being followed.

The Audit Test That Would Normally Be Regarded as a Test