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)inspection.
B)observation.
C)reperformance.
D)reconciliation.

Question

Quizplus · Accepted Answer

The best choice for an auditor in performing tests of control procedures that involve segregation of functions and leave no transaction trail is observation. This involves physically watching or visually seeing the segregation of duties being performed, such as an employee accessing a secure server with another employee present to monitor the access. This can also include observing the physical handling of certain assets or documents to ensure that segregation of duties is properly in place.

A Procedure That Would Most Likely Be Used by an Auditor