Which of the following best represents a walkthrough?
A)The controller reviews the bank reconciliation prepared by the accountant and its resulting journal entries.
B)The auditor walks the production line to find inefficiencies in the inventory process and reports them to management.
C)The controller takes a sample of recorded write-offs to ensure they have been properly approved.
D)The auditor traces three purchasing transactions from the purchase order to the financial statement for observation and understanding.

Question

Quizplus · Accepted Answer

A walkthrough involves tracing a transaction or a process from beginning to end to gain an understanding of how it works and identify any control weaknesses or inefficiencies. Option D describes the auditor tracing three purchasing transactions from the beginning (the purchase order) to the end (the financial statement) to observe and understand the purchasing process. Options A and C describe review and sampling procedures, respectively, which are not walkthroughs. Option B describes an operational audit, which may involve walking the production line, but it is not a walkthrough.

Which of the Following Best Represents a Walkthrough