AA – L2 – SA – Q1.8 – Test of Control

Identify which is not a test of control.

Question

Which of the following is NOT a test of control? A Checking that all purchase invoices are authorized by the proper people B Test checking from purchase invoices to goods received notes C Where a list of approved suppliers exists, checking that orders are placed only with suppliers on such a list D Checking for sequential numbering by the client of purchase invoices received

Answer

Explanation:
Tests of control verify the effectiveness of internal controls, such as checking invoice authorization (A), ensuring orders use approved suppliers (C), and verifying sequential numbering (D). Test checking from purchase invoices to goods received notes (B) is a substantive test, as it confirms the occurrence of transactions, not the control process. Thus, B is correct.

Tags: Audit Evidence, ICAG, Purchase Invoices, Test of Control
Level: Level 2

Topic: Audit and Assurance Evidence

Uploader: Salamat Hamid