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

Question

Quizplus · Accepted Answer

Observation and inquiry are appropriate when there is no documentary evidence, as they involve watching the process and asking questions to understand the controls in place.

An Auditor Wishes to Perform Tests of Controls on an Entity's