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

question 42

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.

---

Definitions:

Product Brochure

A marketing document designed to introduce a product or service to potential customers, highlighting features, benefits, and specifications.

Sampling

The process of selecting a subset of individuals or items from a larger population or collection to estimate characteristics of the whole group.

Commodity Products

Commodity products are basic goods that are interchangeable with other goods of the same type, typically standardized and traded on bulk in markets.

Buying Decisions

The process by which individuals or organizations select products or services to purchase, influenced by factors such as needs, desires, and external pressures.