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“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?
hmm… this is a bit confusing. if i have a follow i will ask.. i need to absorb this first
how does one distinguish between the 2 types of tests? i am unable to apply the definitions
If 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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