Question

Which audit technique examines the way transactions are processed?

a) Exception reporting technique
b) Transaction tagging technique
c) Snapshot technique
d) Parallel simulation technique

Answer 1

The snapshot technique is the audit technique that examines the way transactions are processed.

Step-by-step explanation:

The correct audit technique that examines the way transactions are processed is the snapshot technique. This technique involves taking a 'snapshot' of the processes and systems involved in transaction processing to identify any weaknesses or inefficiencies. It provides a detailed understanding of how transactions flow through an organization and allows auditors to assess controls and identify areas for improvement.