ICAEW ARF · Chapter 4 · Question 8 of 12
Which of the following is a test of control?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Inspecting a sample of purchase invoices for evidence of approval by the purchasing manager
Explanation
Tests of control obtain evidence about whether controls operated effectively during the period, such as looking for evidence that invoices were approved. Agreeing balances to supplier statements, recalculating accruals and comparing wages year on year are substantive procedures that seek evidence directly about the amounts.
More Internal control systems and IT controls MCQs
- Q10Which of the following would NOT normally be included in an auditor's report to management on internal control deficiencies?
- Q11Which of the following controls best prevents unauthorised changes being made to a company's accounting software?
- Q12What is the main purpose of a walk-through test?
- Q1Which of the following is NOT a component of an entity's system of internal control?
- Q2Which of the following forms part of the control environment?