Final answer:
The option that is NOT a part of tests of control is A) Performance. Other parts of tests of control include Observation, Inquiry, and Inspection of physical evidence, which are all ways the auditor evaluates the effectiveness of internal controls.
Step-by-step explanation:
The correct answer to the question: Which of the following is NOT a part of tests of control?, with options A) Performance, B) Observation, C) Inquiry, and D) Inspection of physical evidence, is A) Performance. Tests of control are audit procedures conducted by an auditor to evaluate the effectiveness of the internal controls in preventing, or detecting and correcting, material misstatements at the assertion level. The common parts of tests of control typically include Observation, Inquiry, and Inspection of physical evidence, but they do not include Performance, as this pertains to executing the controls, not testing them.
Option B) Observation, relates to the auditor watching the company's procedures in action. Option C) Inquiry, involves discussing controls and procedures with the staff. Option D) Inspection of Physical Evidence, refers to examining actual documents and records.
To further explain the incorrect option, Performance in the context of tests of control would be related to how well the internal controls are being executed by the entity's personnel, and while this could be assessed during the tests of control, it isn't a part of tests in itself. Instead, Performance might be the subject of the outcomes of tests of control.