A flowchart is most frequently used by an auditor in connection with the:
A)preparation of generalized computer audit programs.
B)review of the entity's internal controls.
C)use of statistical sampling in performing an audit.
D)performance of analytical procedures of account balances.

Question

Quizplus · Accepted Answer

A flowchart is a graphical representation of a process, showing the steps involved as well as the decision points and flows of documents or data. An auditor can use a flowchart to understand and review the entity's internal controls, identifying potential weaknesses, duplications, or omissions that may affect the reliability of financial reporting. Flowcharts can also help the auditor to plan and follow the audit trail, as well as minimize the risk of errors or fraud. While flowcharts may be used in other aspects of the audit (such as the preparation of audit programs or the execution of sampling or analytical procedures), their primary purpose is to aid in the understanding and evaluation of internal controls.

A Flowchart Is Most Frequently Used by an Auditor in Connection