Tests of Controls, Either Manual or Automated, May Include the Following

question 24

Multiple Choice

Tests of controls, either manual or automated, may include the following types of evidence and procedures. Which of these procedures is not the same as those procedures used to obtain an understanding of internal controls?

• A) Make inquiries of appropriate client personnel.
• B) Examine documents, records, and reports.
• C) Observe control-related activities.
• D) Reperform client procedures.

---

Definitions:

Earnings Per Share

A calculation that indicates the portion of a company's profit allocated to each outstanding share of common stock.

Common Stock

A type of security that represents ownership in a corporation, with holders typically having voting rights.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life to reflect wear and tear or obsolescence.

Income Statement

A report detailing a business's income, expenditures, and profit for a certain timeframe.