CPA-AUDITING practice question 12 of 35
An auditor generally tests the segregation of duties related to inventory by:
Full set: 1,026 questionsChoice "a" is correct. The independent auditor's direct personal knowledge, based on personal inquiry and observation, are auditing procedures commonly used to test segregation of duties. Choice "b" is incorrect. Test counts and cutoff procedures represent substantive tests, and they would not be used to test segregation of duties. Choice "c" is incorrect. Analytical procedures and invoice recomputation represent substantive tests, and they would not be used to test segregation of duties. Choice "d" is incorrect. Document inspection and reconciliation represent substantive tests, and they would not be used to test segregation of duties.
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