The Auditor Would Like to Design a Test of Control

question 57

Multiple Choice

The auditor would like to design a test of control to test that statements are mailed to all customers each month.Which of the following typical tests of controls would be suitable?

• A)Inquire about who is responsible for mailing the statements.
• B)Find out whether customers pay by statement or by invoice.
• C)Reconcile subsequent payments to particular invoices.
• D)Match remittance advices from customers to customer statements.

---

Definitions:

Lease Agreements

Legal contracts that define the terms and conditions under which property is rented from one party to another.

Supervising Attorney

A licensed lawyer who oversees the work of subordinate attorneys, ensuring legal work meets professional standards.

Objective Analysis

An impartial evaluation or examination based on facts and evidence, typically applied in the context of legal or policy analysis.

Legislative Propositions

Proposed laws or amendments that are submitted to a legislature or the public for approval.