The major limitation with the observation technique for testing controls is that:
A) the employee may not be truthful in telling the auditor how the control procedure is performed.
B) the employee may perform the control procedure more diligently when they know they are being observed.
C) Both a and b
D) None of the above.

Question

Quizplus · Accepted Answer

The major limitation of observation is that employees may alter their behavior and perform tasks more diligently when they know they are being observed, which may not reflect their usual performance.

The Major Limitation with the Observation Technique for Testing Controls