Audit evidence regarding the separation of duties is normally best obtained by:
A)preparing flowcharts of operational processes.
B)preparing narratives of operational processes.
C)observation of employees applying control activities.
D)inquiries of employees applying control activities.

Question

Quizplus · Accepted Answer

Observation of employees applying control activities provides the most direct and reliable audit evidence regarding the separation of duties. Flowcharts and narratives can be helpful in understanding the process, but they do not necessarily confirm whether a proper separation of duties is being applied. Inquiries can also provide information, but they may not always be reliable as employees may not be willing to disclose any weaknesses or deficiencies in the control environment.

Audit Evidence Regarding the Separation of Duties Is Normally Best