Which of the following audit tests would be regarded as a test of controls?
A. Tests comparing inventory pricing to vendors' invoices.
B. Tests of the specific items making up the balance in a given general ledger account.
C. Tests of the additions to property, plant, and equipment by physical inspections.
D. Tests of the signatures on canceled checks to the board of directors' authorizations.
Answer: D
You might also like to view...
Which of the following is not a characteristic that distinguishes services from goods?
A. Services are perishable. B. Services are heterogeneous. C. A service is intangible. D. Service jobs are unskilled. E. None of these
Fixed-price contracts are preferred by both clients and contractors when the scope of the project is clear and well defined
Indicate whether the statement is true or false
The IRR rule states that a firm should accept any project with an internal rate of return greater than or equal to a pre-specified hurdle rate
Indicate whether the statement is true or false
Small-business investment companies
A. are an extension of the SBA. B. are individual, nonprofit organizations. C. are profit-making organizations. D. do not expect a return on their investments. E. make loans to small businesses.