The audit test that would normally be regarded as a test of control is:
A)enquiries of third parties.
B)test of the specific items making up the balance in a given general ledger account.
C)test of the additions to property, plant, and equipment by physical inspections.
D)test of the signatures on purchase orders to a list of approved signatories.

Question

Quizplus · Accepted Answer

A test of control is designed to evaluate the effectiveness of a process or control. Testing signatures on purchase orders against a list of approved signatories is a test of control because it checks whether the control procedure of authorizing purchases is being followed.

The Audit Test That Would Normally Be Regarded as a Test