An Auditor Wishes to Perform Tests of Controls on an Entity's

question 77

Multiple Choice

An auditor wishes to perform tests of controls on an entity's cash disbursements procedures. If the control activities leave no audit trail of documentary evidence, the auditor most likely will test the procedures by:

• A)inquiry and analytical procedures.
• B)confirmation and observation.
• C)observation and inquiry.
• D)analytical procedures and confirmation.

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Definitions:

Sophisticated Software

Advanced computer programs that are designed to perform complex tasks efficiently and effectively.

Social Responsibility

The ethical framework suggesting that entities, whether businesses or individuals, have an obligation to act for the benefit of society at large.

Larger Society

Refers to the broader social environment beyond local or immediate contexts, encompassing national or global communities and their norms, values, and structures.

Accountable

Being responsible for one's actions and decisions, often within a professional or organizational context, ensuring transparency and trust.