Which of the following is a test of controls?
A)reviewing the payroll journal,general ledger,and payroll earnings records for large or unusual amounts
B)examining time cards for indication of supervisor approval
C)comparing cancelled cheques with payroll journal for name,amount,and date
D)examining cancelled cheques for proper endorsement

Question

Quizplus · Accepted Answer

Examining time cards for indication of supervisor approval is a test of controls as it ensures that proper procedures were followed for authorizing employee hours worked. The other choices are tests of substantive procedures, which focus on the accuracy and completeness of transactions rather than the effectiveness of controls.

Which of the Following Is a Test of Controls