Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 93

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?

Answer options

• A. Interviewing the finance manager regarding the activities.
• B. Mailing questionnaires to the accounts payable employees about the activities
• C. Observing the activities as performed by the employees.
• D. Reperforming the activities indicated in the payment procedures.

Correct answer: D

Explanation

Reperforming the activities indicated in the payment procedures directly verifies whether the tasks are being carried out as documented, making it the most persuasive technique. In contrast, interviewing the finance manager and mailing questionnaires may provide insight but do not confirm actual practice, while observing activities can be limited to a specific timeframe and may not capture all occurrences.