Question

The auditor's tests to understand the client's internal controls might include which of the following types of procedures?

1) Analytical procedures
2) Observation of the client's operations
3) Inquiry of the client's personnel
4) All of the above

Answer 1

The auditor's tests to understand the client's internal controls might include analytical procedures, observation of the client's operations, and inquiry of the client's personnel.

Step-by-step explanation:

The auditor's tests to understand the client's internal controls might include all of the following types of procedures:

1. Analytical procedures: The auditor analyzes financial and non-financial data to identify any unusual patterns or trends that could indicate control weaknesses.
2. Observation of the client's operations: The auditor physically observes the client's operations, such as inventory handling or cash handling, to assess the effectiveness of the internal controls.
3. Inquiry of the client's personnel: The auditor interviews the client's personnel to gain an understanding of the internal control system and to identify any control deficiencies or deviations from established procedures.

Answer 2

4) all of the above

(Ai generated)