Audit Evidence Concerning Segregation of Duties Ordinarily Is Best Obtained

question 1018

Multiple Choice

Audit evidence concerning segregation of duties ordinarily is best obtained by:

• A) Performing tests of transactions that corroborate management's financial statement assertions.
• B) Observing the employees as they apply control procedures.
• C) Obtaining a flowchart of activities performed by available personnel.
• D) Developing audit objectives that reduce control risk.

---

Definitions:

Acetyl CoA

Acetyl CoA is a central metabolite in energy metabolism, acting as a substrate for the citric acid cycle and involved in the synthesis and oxidation of fatty acids.

Citric Acid Cycle

A sequence of biochemical processes that all oxygen-using organisms employ to produce energy by converting acetate, obtained from carbohydrates, fats, and proteins, into carbon dioxide.

Acetyl Group

A 2-carbon group derived from acetic acid (acetate).

FADH₂

A reduced form of flavin adenine dinucleotide, a redox-active coenzyme involved in cellular respiration.