Purchases testing is performed most efficiently by the use of controls testing.

Question

Quizplus · Accepted Answer

Controls testing focuses on evaluating the effectiveness of internal controls in preventing errors or fraud in financial transactions, including purchases. It ensures that the purchasing transactions are properly authorized, recorded, and reported in the financial statements. Therefore, controls testing can help identify any weaknesses in the purchasing process and provide assurance that purchases are accurate and complete.

Purchases Testing Is Performed Most Efficiently by the Use of Controls