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AICPA CPA-Auditing Exam - Topic 1 Question 122 Discussion

An auditor wishes to perform tests of controls on a client's cash disbursements procedures. If the control activities leave no audit trail of documentary evidence, the auditor most likely will test the procedures by:
C) Observation and inquiry.
A) Inquiry and analytical procedures.
B) Confirmation and observation.
D) Analytical procedures and confirmation. Explanation Choice 'c' is correct. If an auditor wishes to perform a test of controls over a procedure that leaves no audit trail, then the auditor must use observation and inquiry to test the control. Choices 'a', 'b', and 'd' are incorrect. Analytical procedures and confirmation are both substantive tests of balances, not tests of controls.

AICPA CPA-Auditing Exam - Topic 1 Question 122 Discussion

Actual exam question for AICPA's CPA-Auditing exam
Question #: 122
Topic #: 1
[All CPA-Auditing Questions]

An auditor wishes to perform tests of controls on a client's cash disbursements procedures. If the control activities leave no audit trail of documentary evidence, the auditor most likely will test the procedures by:

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Suggested Answer: C

by Ciara at Mar 07, 2026, 07:28 AM

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Wilda
Agreed! Inquiry helps clarify the procedures too.
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Stefany
5 days ago
I think it's definitely C. Observation is key when there's no paper trail.
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Martin
10 days ago
Just to clarify, confirmation isn't a control test, right?
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Phyliss
15 days ago
Totally agree, C is the way to go for this situation!
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German
2 months ago
Wait, how can you test controls without any documentation? Seems risky!
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Alayna
2 months ago
I thought analytical procedures could work too?
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Helga
2 months ago
Definitely C! Observation and inquiry are key when there's no paper trail.
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Toshia
3 months ago
I thought confirmation could work too, but I guess not!
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Skye
3 months ago
Analytical procedures are definitely not for controls, good call!
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Eloisa
3 months ago
Wait, can you really test controls without any evidence?
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Bernadine
3 months ago
Totally agree, C is the way to go!
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Stefany
3 months ago
Gotta go with observation and inquiry for no audit trail!
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Joanne
3 months ago
I feel like I might confuse the terms sometimes. I know observation is important, but I’m not entirely clear on how inquiry fits in with testing controls.
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Blair
4 months ago
I practiced a similar question where we had to determine the best approach without an audit trail. I think observation and inquiry were the right answers there too.
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Haydee
4 months ago
I’m a bit unsure about this one. I thought analytical procedures could also be used in some control tests, but maybe that’s only for substantive testing?
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Virgilio
4 months ago
I remember we talked about how observation and inquiry are key when there's no documentation to rely on. It makes sense for testing controls.
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