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Which of the following is NOT included in the observation and inspection audit procedures?

  • Observation of entity activities and operations
  • Inspection of documents such as business plans and strategies
  • Reading reports prepared by management and those charged with governance
  • Conducting interviews with employees (correct)

    • What is the purpose of tracing transactions through the information system relevant to financial reporting?

  • To ensure that all transactions are recorded accurately
  • To identify any errors or irregularities in the information system (correct)
  • To provide information about the entity and its environment
  • To support inquiries of management and others

    • Which of the following is NOT a type of document that may be inspected during observation and inspection procedures?

  • Business plans and strategies
  • Internal control manuals
  • Employee performance evaluations (correct)
  • Records

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