Which of the Following Tests of Controls Is Least Useful

question 15

Multiple Choice

Which of the following tests of controls is least useful in assessing the transaction-related audit objective related to occurrence?

• A) Examine documents in voucher package for occurrence.
• B) Examine supporting documents for indication of approval.
• C) Account for sequence of vouchers.
• D) Attempt to input transactions with valid and invalid vendors.

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Definitions:

Capacity to Contract

refers to the legal ability of a person to enter into a binding agreement.

Ward's Capacity

The legal competence or ability of a ward (a person under the protection of a legal guardian) to act in their own interests.

Guardian with Full Powers

An individual appointed by the court to have complete responsibility for the personal and/or financial matters of a minor or legally incapacitated person.

Voidable Policy

A contract or insurance policy that can be declared invalid by one of the participating parties due to certain conditions not being met or misrepresented.