Which of the following procedures most likely would provide an auditor with evidence about whether an entity's internal control activities are suitably designed to prevent or detect material misstatements?
a. Performing analytical procedures using data aggregated at a high level.
b. Observing the entity's personnel applying the activities.
c. Vouching a sample of transactions directly related to the activities.
d. Reperforming the activities for a sample of transactions.
Answer:B
Choice "b" is correct. Observation and inspection may be used to *uate the design of controls. Observation of entity personnel applying control activities is a procedure that would likely provide evidence about the design of the activities.
Choice "d" is incorrect. Reperforming control activities provides the auditor with evidence about the operating effectiveness of specific control activities, not the design effectiveness.
Choice "a" is incorrect. Analytical procedures would not provide the auditor with evidence about the design of specific control activities.
Choice "c" is incorrect. Vouching a sample of transactions directly related to control activities would not provide the auditor with evidence about the design of specific control activities.