In inquiry, the auditor is not allowed to ask the employee who prepares the bank reconciliation how reconciling items are identified and the reasons for them.

Question

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Inquiry is a procedure in which the auditor may ask questions of the employees involved in the financial reporting process to obtain information relevant to the audit. The auditor is allowed to ask the employee who prepares the bank reconciliation how reconciling items are identified and the reasons for them. However, the auditor should also perform additional audit procedures to corroborate the information obtained through inquiry.

In Inquiry, the Auditor Is Not Allowed to Ask the Employee