The type of audit evidence known as inquiry does not ordinarily provide sufficient audit evidence of the absence of a material misstatement, nor is it alone sufficient to test the operating effectiveness of controls.

Question

Quizplus · Accepted Answer

Inquiry is a type of audit evidence that involves obtaining information from knowledgeable parties within or outside the entity being audited. However, since it is based on verbal or written responses from individuals, it may not provide sufficient evidence of the absence of material misstatements. Inquiry alone is also not sufficient to test the operating effectiveness of controls, as other types of evidence such as observation and inspection may be needed.

The Type of Audit Evidence Known as Inquiry Does Not