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 using
A) Confirmation and observation.
B) Observation and inquiry.
C) Analytical procedures and confirmation.
D) Inquiry and analytical procedures.

Question

Quizplus · Accepted Answer

If there is no audit trail of documentary evidence for control activities related to cash disbursements procedures, the auditor most likely will choose to test the activities using observation and inquiry. The auditor can observe the client's procedures and inquire about the controls in place to gain an understanding of whether they are effective. This approach would not rely on confirmation or analytical procedures as there is no documentary evidence to confirm, and analytical procedures are not suitable for testing controls.

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