An auditor watching an employee prepare a bank reconciliation would be an example of _______.
A)observation
B)professional skepticism
C)recalculation
D)inquiry

Question

Quizplus · Accepted Answer

Watching an employee prepare a bank reconciliation falls under the category of observation. The auditor is physically observing the process being carried out by the employee. Professional skepticism refers to the attitude of the auditor, recalculation involves verifying mathematical accuracy, and inquiry involves asking questions to obtain additional information.

An Auditor Watching an Employee Prepare a Bank Reconciliation Would