Which of the following procedures would not be used to obtain an understanding of the entity and its environment?
A)Observe entity operations.
B)Reperform entity processes.
C)Verify proper valuation of inventory subject to technological obsolescence.
D)Review prior year's audit documentation.

Question

Quizplus · Accepted Answer

Verifying the proper valuation of inventory subject to technological obsolescence is more related to the performance of substantive procedures rather than obtaining an understanding of the entity and its environment. Observing operations, reperforming processes, and reviewing prior audit documentation are all methods to understand the entity's environment and operations.

Which of the Following Procedures Would Not Be Used to Obtain