You are a new auditor for B&O LLP, a large public
accounting
You are a new auditor for B&O LLP, a large public
accounting firm with many
publicly traded audit clients. You have just been assigned
to perform controls testing
for the integrated audit on one of B&O’s largest
clients. One of the steps specified
in your audit program is to test the review process over
cash disbursements
performed by the company’s supervisor.
Required:
(a) Is inquiry the best way to test the control? If yes,
why? If no, why not?
(b)Will inquiry provide sufficient audit evidence? Explain.
(c) Is inspection the best way to test the control? If yes,
why? If no, why not?
(d) Is reperformance the best way to test the control? If
yes, why? If no, why not?
(e) List the audit procedures you would perform to
sufficiently test the control.
