Which of the following statements is true about visual observation during an audit engagement? 1. Visual observations should not be documented as the facts have not been substantiated. 2. Complex conditions observed should be verified prior to communicating observations to management. 3. Visual observations can be used to detect ineffective controls, idle resources, and safety hazards. 4. Visual observation can be used during both preliminary survey and fieldwork stages of the audit engagement.
A) 1 and 2 only
B) 3 and 4 only
C) 1, 2, and 4 only
D) 2, 3, and 4 only

Question

Quizplus · Accepted Answer

Visual observations should be documented and can be used to detect issues like ineffective controls and safety hazards. Complex conditions should be verified before reporting, and visual observation is applicable in both preliminary and fieldwork stages.

Which of the Following Statements Is True About Visual Observation