Which is clearly a test of control?
A)Confirmation to a customer of an accounts receivable balance.
B)Examination of a sample of purchase order records for electronic,authenticated,authorization.
C)Observing the controller's use of company owned equipment.
D)Sending a letter to the client's attorney to determine litigation that is pending between plaintiff and the defendant.

Question

Quizplus · Accepted Answer

Examination of a sample of purchase order records for electronic, authenticated authorization is a test of control as it checks whether the company's internal controls over purchases are operating effectively.

Answer: C
 Observing the controller's use of company-owned equipment is also a test of control as it examines whether the company is following its policies and procedures regarding the use of company-owned equipment.

Which Is Clearly a Test of Control