A walkthrough is performed to:
ATrace a transaction from initiation to recording and reporting, to evaluate control design
BConfirm balances with banks
CCount physical inventory
DReperform analytical procedures
Answer & Solution
Correct answer: A. Trace a transaction from initiation to recording and reporting, to evaluate control design
1. Walkthroughs help the auditor understand process flow and identify control points.
2. They are a key SA 315 procedure for design evaluation.
3. Confirmations, inventory counts, and analytics are different procedures.
_Source: ICAI BoS CA Final Paper 3, Ch 3 "Risk Assessment and Internal Control"_
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