What type of test seeks evidence that internal controls are being applied as prescribed?

The type of test that seeks evidence that internal controls are being applied as prescribed is the compliance test. Compliance tests are designed to check whether an organization is adhering to established policies and procedures, especially those related to internal controls. These tests involve evaluating the effectiveness of controls by reviewing documentation, conducting interviews, and performing walkthroughs.

By focusing on compliance, these tests provide assurance that internal procedures that are meant to prevent errors or fraud are actually in place and functioning correctly. This is essential for mitigating risks associated with financial reporting and operational integrity.

In contrast, substantive tests are aimed at verifying the accuracy of financial data rather than the effectiveness of internal controls. Error detection tests focus on identifying discrepancies or mistakes in information, while productivity tests assess the efficiency of operations rather than compliance with controls.