Audit evidence concerning proper segregation of duties ordinarily is best obtained by:
A)preparation of a flowchart of duties performed by available personnel.
B)inquiring whether control activities operated consistently throughout the period.
C)reviewing job descriptions prepared by the Personnel Department.
D)direct personal observation of the employees who apply the control activities.

Question

Quizplus · Accepted Answer

Direct personal observation of employees performing their duties is the most reliable way to obtain audit evidence concerning proper segregation of duties. This method allows the auditor to assess the employees' understanding of and compliance with control activities, detect any deviations from established policies and procedures, and identify potential weaknesses in the control system. Flowcharts, inquiries, and job descriptions may provide some evidence of proper segregation of duties, but they are not as effective as direct observation in assessing the actual performance of control activities.

Audit Evidence Concerning Proper Segregation of Duties Ordinarily Is Best