In testing control activities,an auditor ordinarily selects from a variety of techniques,including
A) Inquiry and analytical procedures.
B) Reperformance and observation.
C) Comparison and confirmation.
D) Inspection and verification.

Question

Quizplus · Accepted Answer

Reperformance and observation are the two most common techniques used by auditors in testing control activities.

Reperformance involves testing a control activity by performing the same procedure that is used by the entity to determine whether the procedure is working effectively.

Observation involves watching the entity's employees perform a control activity to determine whether they are following the procedure as designed.

Inquiry and analytical procedures may also be used to test control activities, but they are not as reliable as reperformance and observation.

Comparison and confirmation may be used to test certain types of control activities, but they are not as commonly used as reperformance and observation.

Inspection and verification are not appropriate techniques for testing control activities as they do not provide evidence on whether the control activities are working effectively.

In Testing Control Activities,an Auditor Ordinarily Selects from a Variety