ACCA AA · Chapter 8 · Question 11 of 12
Which of the following is a test of controls rather than a substantive procedure?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Inspecting a sample of purchase invoices for the signature of the authorising manager
Explanation
A test of controls evaluates the operating effectiveness of a control, here the authorisation of invoices. The other procedures are substantive: they seek evidence directly about whether amounts are misstated, through tests of detail or analytical procedures, and do not test whether a control operated.
More Internal control systems MCQs
- Q1Which of the following is NOT one of the components of an entity's system of internal control under ISA 315?
- Q2Which of the following is an element of the control environment?
- Q3At Sprocket Co, a single purchasing clerk raises purchase orders, records supplier invoices in the payables ledger and prepares supplier…
- Q4Which control would best address the objective that goods are only supplied to customers with acceptable credit ratings?
- Q5Which control most directly helps to ensure that all goods dispatched to customers are invoiced?