Which of the following procedures most likely would provide an auditor with evidence about whether an entity's internal control is suitably designed to prevent or detect material misstatements?
A)Scanning the journals produced by the internal control system.
B)Performing analytical procedures using data aggregated at a high level.
C)Vouching a sample of transactions directly related to the controls.
D)Observing the entity's personnel applying the controls.

Question

Quizplus · Accepted Answer

Observing the entity's personnel applying the controls directly allows the auditor to assess whether the internal control is suitably designed to prevent or detect material misstatements by seeing the controls in action.

Which of the Following Procedures Most Likely Would Provide an Auditor