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.

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Definitions:

Social Network

Platforms or sites that facilitate the building of social relationships among people who share interests, activities, backgrounds, or real-life connections.

Buyer-Seller Relationship

The dynamic interaction between a purchaser and a vendor, facilitating the exchange of goods, services, or information.

Unique Monthly Visitor

A measure of the number of distinct individuals who visit a website within a given month, used to gauge site popularity.

Automobile Dealership

A business that sells new or used cars at the retail level, typically based on a dealership contract with an automaker or sales subsidiary.