Which of the Following Audit Tests Would Be Regarded as a Test

question 24

Multiple Choice

Which of the following audit tests would be regarded as a test of controls?

• A)Comparison of the inventory pricing to vendors' invoices
• B)Tests of the signatures on canceled checks to board of directors' authorizations
• C)Tests of the additions to property, plant, and equipment by physical inspections
• D)Review of the specific items making up the balance in a given general ledger account

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Definitions:

Initial Payment

The first payment made in a series of payments for the purchase of an item or service.

Retirement Plans

Retirement plans are financial strategies that include saving, investment, and eventual distribution of funds meant to sustain one's living expenses after retiring from work.

Compounded Monthly

Compounded Monthly refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on a monthly basis.

Monthly Payments

Regular payments made once a month, typically used in contexts such as loans, mortgages, and subscription services.