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Truffles, the engagement partner of a team assigned to audit Butternut Company, was discussing with the team the procedures they will perform to gain an understanding of the client. In their discussion regarding the issue of segregation of duties, one of the newly hired auditors asked Truffles what audit procedure will most likely illuminate this issue. What do you think is the most appropriate response of Truffles? Observation during the usual performance of the process provides the best evidence of segregation of duties. This will involve seeing the actual persons performing the process without relying only on documents or inquiries. I would say analytical procedures should be performed to highlight this. By understanding unusual fluctuations in the accounts being considered, we might be able to pinpoint if there is proper segregation of duties or not. Inquiring or asking questions may be the most appropriate response as you get to sit down with the actual persons performing the processes. Their words should be enough evidence for us to consider. Performing inspection of documents may be best to identify segregation of duties. Inspecting the signatures in the documents would be easy and we can directly determine if these were approved by the proper authority