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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 pre-numbered shipping forms. B. Determine whether internal controls have been implemented. C. Evaluate whether internal controls operated effectively. D. Detect material misstatements in the account balances of the financial statements.

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Answer:

C. Evaluate whether internal controls operated effectively.

Explanation:

Given that, a test of details of the transaction is an activity or process carried out by auditors, which can be done together with the test of control. The purpose of the test of control is, however, to determine the effectiveness of internal control.

Hence, in this situation, the correct answer is option C: Evaluate whether internal controls operated effectively.

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