Question

Which of the following audit procedures would an auditor be least likely to perform using a generalized audit software?

A) Searching records of accounts receivable balances for credit balances.

B) Investigating inventory for possible damaged goods.

C) Selecting accounts receivable for positive and negative confirmations.

D) Listing of unusually large inventory balances.

Answer 1

An auditor is least likely to use generalized audit software to (Option b) investigate inventory for possible damaged goods because this task requires physical inspection and cannot be performed electronically.

Step-by-step explanation:

The question pertains to generalized audit software and which procedures an auditor is least likely to perform using it. Generalized audit software allows auditors to perform various electronic examinations of accounting records. However, the least likely procedure to be performed using this software would be investigating inventory for possible damaged goods. While searching for records of accounts receivable balances, selecting accounts for confirmations, and listing large inventory balances can be performed using queries and data analysis, assessing the condition of physical goods requires physical inspection, which cannot be achieved through audit software.