Question

Which type of audit evidence involves seeking information from the client to gain a better understanding of financial processes or transactions, and can be exemplified by asking questions about internal controls or financial procedures?

a) Physical examination
b) Analytical procedures
c) Inquiries of the client
d) Confirmation

Answer 1

Inquiries of the client is the type of audit evidence that involves seeking information from the client to gain a better understanding of financial processes or transactions.

Step-by-step explanation:

The type of audit evidence that involves seeking information from the client to gain a better understanding of financial processes or transactions is Inquiries of the client. This type of audit evidence is exemplified by asking questions about internal controls or financial procedures. By directly asking the client about their internal controls or financial procedures, auditors can gather information to assess the effectiveness and reliability of the client's financial reporting.