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 the employees who apply the control activities is the best method to obtain evidence regarding proper segregation of duties. This allows the auditor to directly observe whether the control activities are being applied by the appropriate employees and whether there are any weaknesses or breakdowns in the segregation of duties. Flowcharts, inquiries, and job descriptions may provide some useful information, but they do not provide the same level of firsthand knowledge and observation as direct personal observation.

Audit Evidence Concerning Proper Segregation of Duties Ordinarily Is Best