The type of audit procedure known as inquiry does not ordinarily provide sufficient audit evidence of the absence of a material misstatement,nor is it alone sufficient to test the operating effectiveness of controls.

Question

Quizplus · Accepted Answer

The statement is true. Inquiry is a type of audit procedure that involves asking questions of knowledgeable persons within or outside the entity. While it can provide useful information, it is not a standalone procedure for testing the absence of material misstatement or the operating effectiveness of controls. Other procedures such as observation, inspection, and re-performance may be necessary.

The Type of Audit Procedure Known as Inquiry Does Not