Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 215
An internal auditor was assigned to assess the risks related to the oil dispatch process. The auditor visited the oil dispatch facilities, met the manager responsible for oil sales, saw oil being loaded onto railway carriers, and talked to employees involved in the process. Which of the following best describes these audit testing methods?
Answer options
- A. Obtaining documentary evidence and performing questioning.
- B. Conducting interviews and performing analytical procedures.
- C. Performing onsite inspection and obtaining physical evidence.
- D. Conducting physical observation and obtaining testimonial evidence.
Correct answer: D
Explanation
The correct answer is D because the auditor conducted physical observation of the oil loading process and obtained testimonial evidence through discussions with employees. The other options do not fully capture the combination of methods that involve direct observation and employee interactions as effectively as option D does.