Final answer:
The correct answer is option A. The appropriate audit procedure for reviewing the general ledger for unusual adjusting entries is Inspection of Records or Documents. This process involves a detailed examination of the entries to ensure their validity and appropriateness, and it aids in detecting any discrepancies or potential fraud.
Step-by-step explanation:
The student's question concerns identifying the appropriate audit procedure for reviewing general ledger for unusual adjusting entries. The correct audit procedure to use for this task is inspection of records or documents. The process involves examiners scrutinizing the details within the ledger to validate the authenticity, accuracy, and appropriateness of the records. This procedure helps in identifying any irregularities or untypical adjustments that might suggest errors or potential fraudulent activity.
Other procedures mentioned such as recalculation (verifying mathematical accuracy), reperformance (independently executing procedures), and analytical procedures (evaluating financial information through analysis and comparisons) also play important roles in audit processes but are not as directly focused on reviewing individual ledger entries.
It is important for auditors to approach the inspection methodically, often starting with entries that are large, irregular, or made outside the normal course of business, as these are more likely to yield significant findings. Additionally, reviewing the nature of the adjustments and the timing, especially those at period end, can provide insight into the appropriateness of the entries made.