Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › control/Test of control
- This topic has 4 replies, 2 voices, and was last updated 8 years ago by Ken Garrett.
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- September 15, 2015 at 7:02 pm #272033
“Each invoice is stamped as “recorded” once the details have been entered onto the system. The Purchase Ledger manager inspects the file of invoices monthly to ensure all invoices have been recorded”
Control:
stamping “recorded”on invoices ensures that invoices are recorded only once to reduce duplicated payments to suppliers
Test of control
take a sample of invoices from the invoice file and check if these exist on the system.
the kit has the following answer for it:
Select a sample of invoices from the system and inspect these invoices in the invoice file to see if they have been stamped as “recorded”
can u please explain the difference whther my answer is valid?
September 16, 2015 at 9:22 am #272100Your test is not testing a control. It’s a substantive test.
September 16, 2015 at 10:31 am #272122hmm… this is a bit confusing. if i have a follow i will ask.. i need to absorb this first
September 16, 2015 at 6:02 pm #272194how does one distinguish between the 2 types of tests? i am unable to apply the definitions
September 16, 2015 at 10:06 pm #272216If you are carrying out a test of control you have to be testing the operation of the control.
Tracing invoices from the invoice file to the sysem is not testing a control – it’s a test of detail.
The control is that the invoice is stamped ‘Recorded’ and that is the action that has to be tested in a test of control.
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