Which one of the following is a test of controls?
A) Examine time records for indication of supervisor approval.
B) Prove the bank reconciliation.
C) Reconcile payments in the payroll journal with payments on the bank statement.
D) Review the payroll journal, general ledger, and payroll earnings records for large or unusual amounts.

Question

Quizplus · Accepted Answer

Examining time records for indication of supervisor approval is a test of controls as it checks whether the internal control system of obtaining supervisor approval is working effectively.

Which One of the Following Is a Test of Controls