Answer (A) is correct . Flowcharts are graphical representations of the step-by-step progression of transactions, including document (information) preparation, authorization, flow, storage, etc. Flowcharting allows the internal auditor to analyze a system and to identify the strengths and weaknesses of the purported internal controls and the appropriate areas of audit emphasis.
Answer (B) is incorrect because A questionnaire approach provides only an agenda for evaluation.
Answer (C) is incorrect because A matrix (decision table) approach does not provide the visual grasp of the system that a flowchart does.
Answer (D) is incorrect because A detailed narrative does not provide the means of evaluating complex operations that a flowchart does.
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