Question

Which of the following audit tests would be regarded as a test of a control?

A.	Tests of the specific items making up the balance in a given general ledger account.

B.	Tests confirming receivables.

C.	Tests of the signatures on canceled checks to board of director's authorizations.

D.	Tests of the additions to property, plant, and equipment by physical inspection.

Explain all the answers

Answer 1

The answer to the above mentioned question is

C. Tests of the signatures on canceled checks to board of director's authorizations.

Test of controls are the audit procedures designed to evaluate the operating effectiveness of controls in preventing, or detecting and correcting, material misstatements at the assertion level.

Here in this case, tests of the signatures on canceled checks to board of director's authorizations is an audit procedure which is kept in place so that any misstatement arising on the account of such cancelled checks are prevented. Therefore, it is regarded as test of control.