An auditor wishes to perform tests of controls on a client's cash disbursements procedures. If the control activities leave no audit trail of documentary evidence, the auditor most likely will test the activities by:
A)confirmation and observation.
B)observation and inquiry.
C)analytical procedures and confirmation.
D)inquiry and analytical procedures.

Question

Quizplus · Accepted Answer

Since there is no audit trail of documentary evidence, the auditor will have to rely on other methods such as observation and inquiry to test the control activities. Confirmation is not applicable as there is no documentation to confirm, and analytical procedures alone may not provide sufficient evidence of the effectiveness of the control activities.

An Auditor Wishes to Perform Tests of Controls on a Client's