In the audit performance phase of an operational audit, the auditor relies primarily on:
A) tests of compliance and tests of balances.
B) confirming and vouching.
C) tests of transactions and tests of balances.
D) inquiring and observation.
E) tracing and vouching.

Question

Quizplus · Accepted Answer

In the audit performance phase of an operational audit, the auditor primarily relies on inquiring and observation to understand the processes, controls, and operations of the entity being audited. This approach helps the auditor to assess the efficiency and effectiveness of operations.

In the Audit Performance Phase of an Operational Audit, the Auditor