Segregation of duties between production,inventory control,and accounting are important controls in the inventory and distribution cycle.How would the auditor test these controls?
A)using inquiry and reperformance
B)using observation and inquiry
C)using observation and reperformance
D)using discussion with management

Question

Quizplus · Accepted Answer

The auditor would use observation to see how duties are actually segregated and inquiry to understand the processes and controls in place.

Segregation of Duties Between Production,inventory Control,and Accounting Are Important Controls