Bigmurf's suggestion of pulling the emergency brake cable out to lock the trailer wheels will tell you if the brakes are working. If they're not locked up, they're not working. Either have someone drive the rig slowly while you pull the cable loose. Or jack up one or more wheels, then pull the cable out. If any wheel will turn, that brake is not working.
Actually, I like the compass idea, too. I never heard or thought of that one.
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