An auditor wants to perform tests of controls on a client's cash disbursement procedures.If the control procedures leave no audit trail or documentary evidence,the auditor is most likely to test the procedures by
A)confirmation and observation.
B)confirmation and analytical procedures.
C)observation and inquiry.
D)inquiry and analytical procedures.

Question

Quizplus · Accepted Answer

If the control procedures leave no audit trail or documentary evidence, the auditor can only test them through observation and inquiry. The auditor can observe the client's employees performing certain tasks related to the cash disbursement procedures and inquire about the procedures followed to ensure that they are adequate to prevent or detect errors or fraud. Confirmation and analytical procedures require documentary evidence or data, which is not available in this scenario.

An Auditor Wants to Perform Tests of Controls on a Client's