The auditor would like to design a test of control to test that there is a separation of duties between billing,recording sales,and handling of cash receipts.Which of the following typical tests of controls would be suitable?
A)Match the amounts billed to the amounts recorded.
B)Verify that sales have been recorded in the proper period.
C)Trace cash receipts to the duplicate bank deposit slips.
D)Inquire about the duties of the accounting personnel.

Question

Quizplus · Accepted Answer

Inquiring about the duties of the accounting personnel helps the auditor understand whether there is a proper separation of duties among billing, recording sales, and handling cash receipts.

The Auditor Would Like to Design a Test of Control