The auditor is examining copies of sales invoices only for the initials of the person responsible for checking the extensions. This is an example of aSelect one:a.Test of balancesb.Substantive testc.Test of controlsd.Dual purpose test
Question
The auditor is examining copies of sales invoices only for the initials of the person responsible for checking the extensions. This is an example of aSelect one:a.Test of balancesb.Substantive testc.Test of controlsd.Dual purpose test
Solution
This is an example of a Test of controls.
Here's why:
A test of controls is a type of audit procedure where the auditor evaluates the effectiveness of a company's internal control policies and procedures. In this case, the auditor is checking if the company's policy of having sales invoices initialed by the person responsible for checking the extensions is being followed
Similar Questions
An auditor performs a test to determine whether all merchandise for which the client was billed was received. The population for this test consists of all:Select one:a.merchandise receivedb.vendor's invoicesc.canceled checksd.receiving reports
An auditor can perform tests of controls only. Question 4Answer True False
When designing tests of controls and tests of details, the auditor shall determine means of selecting items for testing that are effective in meeting the purpose of the audit procedure.Select one:TrueFalse
Explain the two types of tests that IS auditors normally used for evidence evaluation.
To test the existence assertion for recorded receivables, an auditor would select a sample from theSelect one:a.sales orders fileb.shipping documents (bills of lading) filec.accounts receivable subsidiary ledgerd.customer purchase orders
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.