Which of the Following Tests of Controls Is Useful to Test

question 67

Multiple Choice

Which of the following tests of controls is useful to test the transaction-related audit objective of posting and summarization?

• A) Observe whether monthly statements are sent.
• B) Observe unrecorded cash at a point in time.
• C) Observe whether the accountant reconciles the bank account.
• D) Observe endorsement of incoming checks.

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Definitions:

Collaboratively

In a manner involving two or more people working together towards a common goal, often emphasizing teamwork and shared decision-making.

Cognitive Development

The process by which individuals acquire, understand, and use knowledge, progressing through various stages of mental growth.

Pledge Of Allegiance

A formal expression of loyalty or commitment to a flag, country, or cause, often recited in groups in the United States.

Political Importance

The significance or influence an issue, person, or matter has within the political sphere, affecting decision-making, policy, or power dynamics.