Which of the following is an objective of a 'walkthrough'?

Answer options:

To test the operating effectiveness of controls.

To confirm the auditor's understanding of the process flow and control design.

To identify all fraud that occurred during the year.

To obtain sufficient evidence to issue an opinion on internal control.

How to approach this question

Walkthrough = Understanding & Design. Not Testing Effectiveness.

Full Answer

B.To confirm the auditor's understanding of the process flow and control design.✓ Correct

A walkthrough involves tracing a transaction from origination through the entity's information system to its reporting. Its primary purpose is to confirm the auditor's understanding of the process and evaluate the design of controls.

Common mistakes

Thinking a walkthrough tests operating effectiveness.

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