Which One of the Following Is a Test of Controls

question 138

Multiple Choice

Which one of the following is a test of controls?

• A) Examine time records for indication of supervisor approval.
• B) Prove the bank reconciliation.
• C) Reconcile payments in the payroll journal with payments on the bank statement.
• D) Review the payroll journal, general ledger, and payroll earnings records for large or unusual amounts.

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Definitions:

Regulatory Agencies

Government or authorized bodies that oversee and enforce standards and regulations in specific industries to ensure compliance and protect public interests.

Compensation Recovery

The process of reclaiming funds from employees, especially executives, usually due to non-compliance with contracts or in cases of restatement of financials due to misreporting.

Incentive Payments

Payments or bonuses provided to employees or executives beyond their regular salaries, often tied to performance goals or achievements.

Conduct Detrimental

Behavior by an individual associated with an organization that is harmful or against the organization's rules or ethos, typically leading to disciplinary action.