The auditor uses the "observation" procedure when he
A)looks at records or documents in paper form
B)looks at records or documents in electronic form
C)performs substantive testing on risky balances
D)looks at a process or procedure performed by the client
E)performs analytical procedures in the risky accounts

Question

Quizplus · Accepted Answer

The observation procedure involves the auditor watching a process or procedure being performed by the client to gain an understanding and evaluate its effectiveness.

The Auditor Uses the "Observation" Procedure When He