Which key elements of testing methodology should be documented? (Select Three.)

Proper documentation of audit testing is crucial for demonstrating the work performed and supporting the conclusions reached. The documentation for a testing methodology must include the test objectives and the criteria for selecting the population (D), which explains the 'why' and 'what' of the test. If sampling is used, the sampling method and rationale for the sample size must be documented (B) to justify the extent of testing. Finally, the documentation must clearly outline the results and how they support the conclusion (A), linking the evidence gathered to the final assessment.

C. Planned business changes are part of the overall audit planning and risk assessment, not a specific element of a single test's methodology documentation.
E. Elements of inherent risk are inputs to the risk assessment that determines the audit plan, not a component of the test methodology documentation itself.
F. While testing techniques are part of the methodology, options A, B, and D represent more fundamental and distinct elements that must be documented for a complete and defensible audit file.

1. The Institute of Internal Auditors (IIA). (2017). International Professional Practices Framework (IPPF). Standard 2330: Documenting Information. "Internal auditors must document relevant information to support the conclusions and engagement results." This standard requires documentation of objectives, scope, and conclusions.

2. The Institute of Internal Auditors (IIA). (2017). International Professional Practices Framework (IPPF). Practice Guide: Audit Sampling. This guide details the necessary documentation for sampling plans, including the method, parameters, items selected, and evaluation of results.

3. ACAMS. (2021). Advanced CAMS-Audit Certification Study Guide. Chapter 2: The Audit Process. This chapter describes the requirements for creating audit workpapers, including documenting the test plan, sampling methodology, and the results of testing.