Which of the Following Procedures Is a Test of Control

question 29

Multiple Choice

Which of the following procedures is a test of control for the validity objective for notes payable?

• A)Read minutes of director's meetings for authorization of financing transactions.
• B)Select a sample of notes payable and vouch cash receipt to the bank statement.
• C)Select a sample of paid notes and recalculate interest expense for the period under audit.
• D)Select a sample of paid notes and trace interest costs to the general ledger expense account.

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Definitions:

Achievable

Refers to a goal or objective that is possible to be accomplished with the resources and time available.

Choking

The phenomenon where an individual fails to perform to their usual level under pressure, typically in critical or high-stakes situations.

Qualitative Study

Research that explores phenomena through non-numerical data, such as interviews, observations, and texts, to understand concepts, thoughts, or experiences.

Overconfidence

The tendency of individuals to overestimate their own abilities, knowledge, or control over situations, often leading to suboptimal decisions.