An Auditor Wishes to Perform Tests of Controls on a ABC

question 22

Multiple Choice

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

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

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Definitions:

Cycle View

A perspective or approach that emphasizes considering processes or systems as recurring cycles to better understand and manage them.

Process Division

The segmentation of a business or production process into distinct tasks or activities for efficiency and specialization.

Customer Order

A customer order is a request made by a customer to purchase goods or services from a business.

Customer Order Entry

The process through which customer orders are received, processed, and entered into a management system.