In the consideration of internal control,the operating effectiveness of controls is tested by:
A)Flowcharts verification.
B)Tests of controls.
C)Substantive procedures.
D)Decision tables.

Question

Quizplus · Accepted Answer

The operating effectiveness of controls is tested by performing tests of controls. This involves testing the design and implementation of controls to ensure they are working as intended and effectively reducing the risk of errors or fraud in the financial statements. Flowcharts help to document the controls, substantive procedures test the accuracy and completeness of the financial data, and decision tables are used to analyze complex decision-making processes. However, none of these are specifically focused on testing the operating effectiveness of controls.

In the Consideration of Internal Control,the Operating Effectiveness of Controls