A procedure that would most likely be used by an auditor in performing tests of control activities that involve segregation of functions and that leave no transaction trail is
A) Inspection.
B) Observation.
C) Reperformance.
D) Reconciliation.

Question

Quizplus · Accepted Answer

When testing control activities that involve segregation of functions and do not leave a transaction trail, such as observing employees to ensure that they are not performing conflicting duties, an auditor would most likely use observation as the procedure. Inspection involves the viewing of documentation, reperformance involves redoing a process, and reconciliation involves comparing two sets of data. None of these procedures would be suitable for testing segregation of functions without a transaction trail.

A Procedure That Would Most Likely Be Used by an Auditor