Which of the following audit tests would be regarded as a test of controls?
A)Tests of the additions to property, plant and equipment by physical inspections.
B)Selecting debtors for a positive confirmation process.
C)Tests comparing inventory pricing to suppliers' invoices.
D)Tests of the signatures on sales orders to a list of approved signatories.

Question

Quizplus · Accepted Answer

Tests of the signatures on sales orders to a list of approved signatories is a test of controls because it is assessing the effectiveness of the company's internal control system over authorization of sales orders. The other options are substantive tests, where the auditor is testing the accuracy and completeness of the financial statements.

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