[watermelon]

The objective of tests of details of transactions performed as tests of controls is to:
A.Monitor the design and use of entity documents such as prenumbered shipping forms.
B.Determine whether internal controls have been implemented.
C.Detect material misstatements in the account balances of the financial statements.
D.Evaluate whether internal controls operated effectively.
Answer is D.
I thought “Test of Details” is a type of Substantive test, but why in the question it’s saying the test of details of transaction performed as “Test of Controls”? I am so confused here.

[workstudyrepeat]

Test of details is a substantive test but the question states that the TOD of transactions are being performed as a TOC. Hence, instead of testing for reasonableness (TOD) you are testing for effectiveness (TOC).

[watermelon]

Got it, I guess i shouldn't struggle about why test of details is performed as Test of control.

[Author]

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