CA Inter P5 · Chapter 3 · Question 9 of 13
Which of the following is a test of control rather than a substantive procedure?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Inspecting a sample of purchase orders for the signature of the authorised purchase manager
Explanation
Tests of controls evaluate whether controls operated effectively, for example by inspecting documents for evidence of authorisation. Supplier confirmations, recomputation of depreciation and analytical comparison of payables are substantive procedures designed to detect material misstatements at the assertion level.
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