Audit evidence concerning proper segregation of duties normally is best obtained by:
A) direct personal observation of the employee who applies control procedures.
B) making inquiries of co-workers about the employee who applies control procedures.
C) preparation of a flowchart of duties performed and available personnel.
D) inspection of third-party documents containing the initials of who applied control procedures.

Question

Quizplus · Accepted Answer

Direct personal observation allows the auditor to see and verify that the duties are being properly segregated by the employee performing them. It is the most reliable and effective method for obtaining audit evidence concerning proper segregation of duties. Making inquiries and preparing a flowchart may provide some evidence, but it may not be as reliable or conclusive as direct observation. Inspection of third-party documents may provide a level of assurance, but it is still not as effective as direct personal observation.

Audit Evidence Concerning Proper Segregation of Duties Normally Is Best