A "walkthrough" can best be described as
A)the auditor physically observes the transaction paper trail from the point of origination to the transaction being entered into the financial records
B)the auditor takes a tour of the accounting department and then observes all departments where a transaction may originate and subsequently be entered into the financial records
C)the auditor follows a transaction from its origination,through the company's processes,including information systems,until it is reflected in the financial records
D)the auditor observes the IT department and reviews the programs that process the transaction from origination to the financial records

Question

Quizplus · Accepted Answer

A walkthrough is a method used by auditors to gain an understanding of a company's processes and ensure the accuracy of the financial records. During a walkthrough, the auditor would follow a transaction from its origination, through each step of the process, including the information systems used, until it is reflected in the financial records. This helps the auditor identify potential errors or weaknesses in the company's processes and make recommendations for improvement. Options A, B, and D all involve some form of observation, but they do not fully capture the essence of a walkthrough as described.

A "Walkthrough" Can Best Be Described as