An auditor has been assigned to perform tests of controls for a client's cash disbursement system. Client files are kept electronically with no paper audit trail. In this case the auditor would need to rely on which of the following audit procedures?
A) Analytical procedures and Inquiry
B) Confirmations and Inquiry
C) Observation and Inquiry
D) Reperformance and Inquiry

Question

Quizplus · Accepted Answer

Since there is no paper audit trail, the auditor cannot rely on reperformance, confirmations, or analytical procedures. The best choice is to rely on observation and inquiry. The auditor can observe the electronic system in action and inquire with the client about the specifics of the system and any controls in place.

An Auditor Has Been Assigned to Perform Tests of Controls