Reviewing sales invoices and asking a sales manager to explain why a price deviation occurred is an example of which audit testing procedure(s):
A) observation.
B) inquiry.
C) inspection.
D) Both b and c

Question

Quizplus · Accepted Answer

Reviewing sales invoices and asking a sales manager to explain why a price deviation occurred involve both inquiry and inspection procedures. Inquiry involves asking questions to obtain information and clarification, while inspection involves examining documentation or records to ensure accuracy and completeness. Therefore, the best choice is D, as it includes both inquiry and inspection.

Reviewing Sales Invoices and Asking a Sales Manager to Explain