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Define a test of control and give one example of test of control regarding wages and salaries?

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Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2016/03/09
Aeisha Abdul Kader
by Aeisha Abdul Kader , Accountant / Professional Assistant , VM Apparel CC

These are audit procedures designed and performed to test the quality of the control measures in place to prevent and detect misstatements/fraud/theft/etc. An example would be the attendance of audit staff at a wage payout to identify whether control procedures such as checking staff ID before handing over wages is in place and is actually carried out.

MUHAMMAD USMAN KHAN
by MUHAMMAD USMAN KHAN , ASSISTANT MANAGER ACCOUNTS , SPELL PETROCHEMICALS PVT LTD

TEST OF CONTROL

                                 Tests of Controls are audit procedures performed to test the operating effectiveness of controls in preventing or detecting material misstatements at the relevant assertion level.

EXAMPLE:

Keep attendance record through thumb impression of employees 

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