Audit procedures to test internal controls are
A)inquiries of management
B)inspection of relevant documentation
C)observation of the application of the control
D)re-certification of the control
E)re-calculation of amounts
F)both A and D
G)both B and C

Question

Quizplus · Accepted Answer

The best choice is a combination of inspection of relevant documentation and observation of the application of the control. These procedures will provide evidence of whether the control is operating effectively and can be relied upon by the auditor during the audit. Inquiries of management and re-certification of the control are also potential procedures, but they may not be as reliable as observation and inspection. Re-calculation of amounts may be relevant for testing specific transactional controls, but it is not a sufficient stand-alone procedure for testing internal controls overall.

Audit Procedures to Test Internal Controls Are