An auditor wants to perform tests of controls on a client's cash disbursement procedures.If the control procedures leave no audit trail or documentary evidence,the auditor is most likely to test the procedures 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 or documentary evidence available for testing, the auditor would need to rely on observation of the procedures being performed and inquiry of relevant personnel to gain an understanding of how the controls operate. Confirmation and analytical procedures require some form of reliable data or documentation to be effective, so they would not be suitable in this scenario.

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