Final answer:
Control testing in audit is a procedure to assess the effectiveness of a company's internal controls, exemplified by checking cash receipts' handling process, whereas audit studies involve experiments to uncover discrimination in sectors like housing and employment.
Step-by-step explanation:
An example of control testing in audit includes procedures to evaluate the effectiveness of a company's internal controls, such as reviewing how they handle cash receipts. The auditor might test the control by selecting a sample of cash transactions and verifying that receipts have been properly accounted for and deposited in a timely manner. This is to ensure that the company’s process for receiving and recording cash is reliable and that transactions are not susceptible to misappropriation or fraud.
Audit studies, on the other hand, are experiments used to identify discrimination by having individuals with different characteristics apply for the same opportunities. When referencing Caroline Krafft's work, it seems audit studies are mainly used to provide evidence on discrimination across various sectors, including housing, education, labor market, and criminal justice. These are quite different from control testing but vital for experimental research on discriminatory practices.