What audit procedure would be an auditor's response to address management override of controls ?
A)Evaluate business rationale for significant unusual transactions.
B)Evaluate systematic processing of large volumes of day-to-day ordinary transactions.
C)Evaluate possibilities of petty cash embezzlements.
D)Evaluate in detail payroll transactions.

Question

Quizplus · Accepted Answer

Evaluating the business rationale for significant unusual transactions can help the auditor determine if there is a reasonable explanation for any potential management override of controls. If there is no valid business reason for a transaction and management authorizes it anyway, it may indicate management override of controls. The other options do not directly address management override of controls.

What Audit Procedure Would Be an Auditor's Response to Address