Observation
Observation involves watching a process or procedure performed by others. It provides evidence about the activity at the time observed, while recognising that people may change their behaviour when watched.
Worked example
The auditor watches staff follow count instructions during an inventory count.
Common mistake
Do not assume observation of one count establishes that controls operated effectively throughout the year.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |