A procedure that would most likely be used by an auditor in performing tests of control procedures that involve segregation of functions and that leave no transaction trail is:
A) observation.
B) reconciliation.
C) inspection.
D) reperformance.

Question

Quizplus · Accepted Answer

Since there is no transaction trail to follow, an auditor would most likely use observation to determine whether segregation of duties is being followed. The auditor would observe employees performing their job duties to see if they are in compliance with established segregation of duties policies. Reconciliation, inspection, and reperformance are not applicable to this situation as there is no transaction trail to follow.

A Procedure That Would Most Likely Be Used by an Auditor