The auditor uses the "inspection" procedure when he
A)examines records or documents in paper form
B)examines records or documents in electronic form
C)performs substantive testing on risky balances
D)performs substantive testing in the risky accounts
E)performs analytical procedures in the risky accounts
F)both A and B
G)both B and C

Question

Quizplus · Accepted Answer

The inspection procedure is used by the auditor when examining records or documents, which can be in either paper or electronic form. Therefore, the best choice is F, which includes both options A and B. The other options (C, D, and E) are related to substantive testing and analytical procedures, which do not involve inspecting records or documents.

The Auditor Uses the "Inspection" Procedure When He