Which of the following is an example of a test of controls?
A)Examining the reasonableness of interest accrued on notes payable.
B)Verify that cash surrender value of life insurance is classified as a long-term asset.
C)Using a spreadsheet to create a pivot table for the summarization of accounts receivable.
D)Reviewing management's monthly bank reconciliations.

Question

Quizplus · Accepted Answer

Reviewing management's monthly bank reconciliations is an example of a test of controls because it involves testing the operating effectiveness of a control (bank reconciliations) to ensure that they are being performed accurately and timely.

Which of the Following Is an Example of a Test