An auditor is concerned about a policy of management override as a limitation of internal control. Which of the following tests would best assess the validity of the auditor's concern?
A)Matching purchase orders to accounts payable.
B)Verifying that approved spending limits are not exceeded.
C)Tracing sales orders to the revenue account.
D)Reviewing minutes of board meeting.

Question

Quizplus · Accepted Answer

Verifying that approved spending limits are not exceeded can help identify instances where management may have overridden controls to authorize transactions beyond set limits.

An Auditor Is Concerned About a Policy of Management Override