Which of the following tests of controls is useful to test the transaction-related audit objective of posting and summarization?
A. Observe whether monthly statements are sent.
B. Observe unrecorded cash at a point in time.
C. Observe whether the accountant reconciles the bank account.
D. Observe endorsement of incoming checks.
Answer:A
Which of the following tests of controls is useful to test the transaction-related audit objective of posting and summarization?
A. Observe whether monthly statements are sent. B. Observe unrecorded cash at a point in time. C. Observe whether the accountant reconciles the bank account. D. Observe endorsement of incoming checks.