Which of the Following Tests of Controls Would Be Most

question 2

Multiple Choice

Which of the following tests of controls would be most effective in testing controls designed to prevent checks from being issued or recorded for the wrong amount?

• A) Observation of bank reconciliations.
• B) Observation of segregation of duties.
• C) Computer assisted audit techniques such as test data to test computer application control.
• D) Observe documents being marked or cancelled as "paid".
• E) Documentation of general controls over access to computer programs and documentation.

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Definitions:

Scrap Value

A projection of the sale price for an asset at the point where it ceases to have utility.

Truck

A large motor vehicle designed for transporting goods by road.

Sum-Of-The-Years-Digits

A method of depreciation that accelerates costs based on the premise that an asset is more productive in its earlier years than its later years.

Scrap Value

The estimated residual value of an asset after its useful life has ended.