An auditor wishes to perform tests of controls on a client's purchasing procedures.If the control activities leave no audit trail of documentary evidence,the auditor most likely will 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 of documentary evidence for the control activities, the auditor would need to rely on observation and inquiry methods to test the procedures. Through observation, the auditor can physically observe the purchasing procedures being followed and through inquiry, the auditor can ask questions and obtain information from relevant personnel to evaluate the effectiveness of the control procedures. Confirmation and analytical procedures are not relevant in this situation as there is no documentation available for the auditor to confirm or analyze.

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