The Purpose of Tests of Controls Is to Determine That

question 8

Multiple Choice

The purpose of tests of controls is to determine that

• A) internal control policies and procedures are functioning as prescribed.
• B) the extent of further audit procedures can be reduced.
• C) errors and irregularities are prevented or detected in a timely manner.
• D) the auditor has an understanding of internal control.

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Definitions:

Managers

Individuals in an organization responsible for planning, organizing, leading, and controlling resources to achieve specific objectives.

Gestures

Physical actions or movements used to communicate feelings or intentions without words.

Encoding

The process of converting information into a particular form, often for communication, storage, or processing, such as encoding a message into language or digital encoding.

Modern Technology

refers to the latest and most advanced technological tools, devices, and systems available for personal, business, or educational use.