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:

Communication Effort

The amount of work and intention put into effectively exchanging information between parties.

Specific Situation

A detailed or particular set of circumstances or conditions that is distinct from others.

Specific Message

A communication or piece of information that is tailored or directed towards a particular group, individual, or purpose.

Audience Interest

The level of curiosity, attention, or engagement shown by the audience toward the subject matter or content presented.