Which one of the following audit tests would be regarded as a test of a control?
A) tests of the additions to property, plant, and equipment by physical inspections
B) tests of matching batch totals of quantities shipped to quantities billed
C) tests of the inventory pricing to vendors' invoices
D) tests of the specific items making up the balance in a given general ledger account

Question

Quizplus · Accepted Answer

Tests of matching batch totals of quantities shipped to quantities billed are considered tests of a control. This test checks whether the control system in place is working effectively to ensure that the quantities shipped and billed are matching, and thus ensures accuracy and completeness of the transactions. Tests of the additions to property, plant, and equipment by physical inspections, tests of the inventory pricing to vendors' invoices, and tests of specific items making up the balance in a given general ledger account are substantive tests, which aim to ensure the accuracy and completeness of balances and transactions.

Which One of the Following Audit Tests Would Be Regarded