2. Which of the following procedures would most likely be used to test Pablo's controls surrounding cash disbursements?
a. Confirmation of year-end and cash balances.
b. Analytical procedures applied to both interim and year-end cash balances.
c. Observation of cash disbursement procedures coupled with appropriate inquiries.
d. Review of Pablo's current procedures manual in conjunction with a review of the previous year's audit documentation.
Choice c is correct. An auditor would likely use inquiry and observation to evaluate controls surrounding cash disbursements.
Choices 1 and 2 are incorrect. Confirmation and analytical procedures applied
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