As part of a preliminary study during an audit of the payment process in accounts payable, an internal auditor requests a list of procedures from the finance manager. The auditor intends to establish whether activities documented in the procedures are undertaken by respective employees as prescribed. Which of the following internal audit techniques will provide the most persuasive information to achieve this objective?
Observing the activities as performed by the employees provides the most persuasive information for determining if the documented procedures are being followed. This technique allows the auditor to directly witness how tasks are being carried out in real-time, which helps in verifying adherence to prescribed procedures. Interviews and questionnaires rely on self-reported data, which may not be entirely accurate or comprehensive. Reperforming activities can help understand the procedures but does not demonstrate if they are being consistently followed by employees.
Observation helps the auditor to see if the process is executed as per the policy.