In order to further understand internal control,an auditor may use inquiry methods by:
A)interviewing key employees to gain further insight into the internal control environment.
B)observing the safeguarding of assets by checking locked doors and safes.
C)tracing a transaction from the boundary of the organization through to the final reporting.
D)documenting thoroughly the internal control through the use of narratives.

Question

Quizplus · Accepted Answer

Inquiry methods involve asking questions to gain information about the internal control environment. Interviewing key employees who are responsible for implementing internal control measures can provide valuable insight into the effectiveness of the organization's internal control system. While observing safeguarding of assets, tracing transactions, and documenting internal control are all important aspects of auditing, they do not specifically address the use of inquiry methods.

In Order to Further Understand Internal Control,an Auditor May Use