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

If there is no audit trail of documentary evidence, the auditor can't perform confirmation or analytical procedures. Therefore, the best choice would be observation and inquiry, which involve observing the client's procedures being performed and inquiring of the client's personnel about the procedures being followed.

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