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

question 90

Multiple Choice

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

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

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Definitions:

Oligarchy

A form of government where power effectively rests with a small number of people, distinguished by royalty, wealth, family ties, education, corporate, or military control.

Aristocracy

A class of people considered to have superior status or privileges, often inherited, based on noble lineage, wealth, or titles.

Direct Democracy

A form of democracy where the people vote on policies directly, rather than through elected representatives.

Representative Democracy

A system of government where citizens elect representatives to make decisions on their behalf.