.Tests of control are not concerned with_______
a) Existence of controls b) Effectiveness of controls
c) Continuity of controls d) Designing of controls
Answers
Answer:
The Tests of control are not concerned with (b) Effectiveness of controls.
Explanation:
- Test of controls is defined as the when procedure the Audit provides for testing the control of effectiveness.
- It is used by entity of the client which helps in preventing or detecting the material misstatements.
- Nature of test control:
1) Inquiry
2) observation
3) Relevant documentation taken into inspection
4) Helps in re-performance of the control
Procedure to be followed to perform the test of control:
1) By creating the inventory of the controls.
2) by prioritizing the control testing.
3) By designing the test that is appropriate for each control
4) The follow up related to issues of the identity.
Concepts used in the test control:
1) Inquiry and procedure of analytical.
2) The process of Comparison and conformation.
3) Inspection along with final verification.
Effectiveness of control is defined as the when a we need to control the risk by managing , reducing and modifying the overall process.
The characteristics of effectiveness of control are as follows:
1) The need of accuracy of the information related to performance based.
2) The timely delivery.
3) The coordination with work flow of the organization.
Therefore, we can understand that test of control will not follow the effectiveness of controls.
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Correct Answer:
(b) Effectiveness of controls.
Explanation:
Test of controls is defined as the when procedure the audit provides for testing the control of effectiveness.
It is used by entity of the client which helps in preventing or detecting the material misstatements.
Nature of test control:
1) Inquiry
2) observation
3) Relevant documentation taken into inspection
4) Helps in re-performance of the control
Procedure to be followed to perform the test of control:
1) By creating the inventory of the controls.
2) by prioritizing the control testing.
3) By designing the test that is appropriate for each control
4) The follow up related to issues of the identity.
Concepts used in the test control:
1) Inquiry and procedure of analytical.
2) The process of Comparison and conformation.
3) Inspection along with final verification.
Effectiveness of control is defined as the when a we need to control the risk by managing , reducing and modifying the overall process.
The characteristics of effectiveness of control are as follows:
1) The need of accuracy of the information related to performance based.
2) The timely delivery.
3) The coordination with work flow of the organization.
Therefore, we can understand that test of control will not follow the effectiveness of controls.
#SPJ3