An auditor has identified the controller's review of the bank reconciliation as a control to test. In connection with this test, the auditor interviews the controller to understand the specific data reviewed on the reconciliation. In addition, the auditor verifies that the bank reconciliation is properly prepared by the accountant and reviewed by the controller as evidenced by their respective sign-offs. Which of the following types of audit procedures do these actions illustrate?

Question

Quizplus · Accepted Answer

The actions described involve an interview (inquiry) with the controller and verification (inspection) of the bank reconciliation sign-offs, which are both inspection of records procedures. Therefore, the best choice is inquiry and inspection of records.

An Auditor Has Identified the Controller's Review of the Bank