An audit procedure that would most likely be used by an auditor in performing tests of control procedures in which the segregation of functions and that leaves no "audit" trail is:
A)inspection.
B)observation.
C)reperformance.
D)reconciliation.

Question

Quizplus · Accepted Answer

Observation would be the most appropriate choice in this scenario as it involves watching and noting what is happening without leaving any trace. This would allow the auditor to verify the segregation of duties without disrupting the normal flow of operations and potentially allowing a person to manipulate the process knowing they are being audited. Inspecting, reperforming or reconciling would all likely leave an audit trail that could be traced or followed.

An Audit Procedure That Would Most Likely Be Used by an Auditor