Which One of the Following Audit Tests Would Be Regarded

question 70

Multiple Choice

Which one of the following audit tests would be regarded as a test of a control?

• A) tests of the additions to property, plant, and equipment by physical inspections
• B) tests of matching batch totals of quantities shipped to quantities billed
• C) tests of the inventory pricing to vendors' invoices
• D) tests of the specific items making up the balance in a given general ledger account

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Definitions:

Security Returns

The gains or losses from investing in a financial security, usually expressed as a percentage of the investment's initial cost.

Macro Events

Large-scale events that affect the broad economy or financial markets, including political changes, natural disasters, or widespread economic shifts.

Firm-Specific Events

Events that affect a particular company directly, such as earnings reports, mergers, or product launches, which can impact the company's stock price independent of market trends.

Portfolio Risk

The level of uncertainty or potential financial loss inherent in an investment portfolio.