ACCA Audit and Assurance (F8) Practice Exam

Which of the following is NOT a type of audit procedure?

1. Analytical procedures

2. Communication

3. Observation

4. Inspection

The correct answer is: Communication

Communication is not classified as an audit procedure in the same way that analytical procedures, observation, and inspection are. Audit procedures are the specific methods that auditors use to gather evidence to support their audit opinion. Analytical procedures involve evaluating financial information by studying relationships and trends, which helps auditors to identify areas that may require further investigation. Observation entails watching a process or procedure being performed, providing direct evidence of how things operate, while inspection involves examining documents or tangible assets to verify their existence or assess their condition. Communication, although critical to the audit process for discussing findings and maintaining stakeholder relationships, does not fall into the category of procedures used to gather audit evidence. It is more about the interaction between the auditor and various parties, rather than a method for collecting data or testing assertions.