Which of the Following Is Not a Common Test of Control

question 14

Multiple Choice

Which of the following is not a common test of control for marketable securities?

• A) Review the minutes of the board meetings.
• B) Review broker's advice for accurate recording of security
• C) Inquire of management about its process for reclassifications.
• D) Review reports of internal audits.

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Definitions:

Ending Balance

The final amount in an account at the end of a reporting period, after all additions and subtractions have been accounted for.

Revenue Account

An account that records the income earned by a company from its business activities.

Debit

A bookkeeping record that raises the value of an asset or expense, or reduces the value of a liability or equity.

Expense Account

An account used to record expenditures incurred by a company, relating to its operational activities.