Which method is used to gather evidence by examining records or documents?

• A. Analytical procedures
• B. Enquiry
• C. Inspection
• D. Reconciliation

Answer: (C)

Inspection is the evidence-gathering method that relies on examining records, documents, and tangible assets to support assertions. By reviewing invoices, contracts, ledgers, minutes, and similar documents, the auditor validates details such as existence, accuracy, and rights and obligations. It can also involve physically examining assets to corroborate information. This direct examination of documentary evidence is what makes inspection the best fit when the question specifies gathering evidence by looking at records or documents.

Analytical procedures assess plausible relationships and trends in financial data; enquiries involve obtaining information from management or others through questions; reconciliation checks that two sets of records agree.