Which of the following audit tests would be regarded as a test of controls?
A)Tests of the specific items making up the balance in a given general ledger account.
B)Tests comparing inventory pricing to vendors' invoices.
C)Tests of the signatures on canceled checks to the board of directors' authorizations.
D)Tests of the additions to property, plant, and equipment by physical inspections.

Question

Quizplus · Accepted Answer

Tests of signatures on canceled checks to the board of directors' authorizations would be regarded as a test of controls because it is testing whether the internal control procedures are effective in ensuring that payments are authorized by the appropriate parties. The other options listed are substantive tests, which are designed to detect material misstatements in the financial statements.

Which of the Following Audit Tests Would Be Regarded as a Test