AICPA CPA-Auditing Exam - Topic 1 Question 122 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 122
Topic #: 1

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:

AInquiry and analytical procedures.

BConfirmation and observation.

CObservation and inquiry.

DAnalytical 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.

Show Suggested Answer

Suggested Answer: C

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

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Bernadine

24 hours ago

Totally agree, C is the way to go!

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Stefany

6 days ago

Gotta go with observation and inquiry for no audit trail!

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Joanne

11 days 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

16 days 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

22 days 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

27 days 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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