Which of the following is not an audit procedure used to gain an understanding of specific controls in ICFR?
A) Making inquiries of appropriate personnel.
B) Inspecting company records.
C) Confirming transactions with external parties.
D) Observing specific actions, behaviors, and procedures.

Question

Quizplus · Accepted Answer

Confirming transactions with external parties is not a procedure used to gain an understanding of specific controls in ICFR. This procedure is usually used to test the completeness and accuracy of transactions, but it does not provide information on internal control procedures. The other three procedures (making inquiries, inspecting records, observing actions) are commonly used in auditing to gain an understanding of internal controls.

Which of the Following Is Not an Audit Procedure Used