Which of the following is not a typical test of controls when auditing debt and equity transactions?
A)Inquiry of personnel performing the control.
B)Comparing current year account balances with prior year account balances.
C)Observation of the control being performed.
D)Reperformance of the control by the auditor testing the control.

Question

Quizplus · Accepted Answer

Comparing current year account balances with prior year account balances is not a typical test of controls when auditing debt and equity transactions. This is a substantive test, which is focused on the accuracy of the account balances rather than the effectiveness of the controls in place. The other options - inquiry, observation, and reperformance of controls - are all tests of controls that allow the auditor to gather evidence about the design and operating effectiveness of the control environment surrounding debt and equity transactions.

Which of the Following Is Not a Typical Test of Controls