The Auditor Would Like to Design a Test of Control

question 25

Multiple Choice

The auditor would like to design a test of control to test that there is a separation of duties between billing,recording sales,and handling of cash receipts.Which of the following typical tests of controls would be suitable?

• A)Match the amounts billed to the amounts recorded.
• B)Verify that sales have been recorded in the proper period.
• C)Trace cash receipts to the duplicate bank deposit slips.
• D)Inquire about the duties of the accounting personnel.