An internal audit activity has to confirm the validity of the activities reported by a...

Introduction:

When verifying the validity of activities reported by a grantee, it is essential to gather evidence that the project was executed as intended and within the defined scope.

Effective Verification Methods:

A site visit allows the auditor to observe firsthand the activities and projects funded by the grant, ensuring they align with the grant's objectives and scope.

Options Analysis:

Option A: Visiting the grantee provides direct evidence of the project execution and alignment with the grant scope.

Option B: Verifying the final report against the initial budget request ensures financial compliance but does not confirm actual project activities.

Option C: Reconciling general ledger accounts verifies financial records but not the execution of activities.

Option D: Interviewing corporate affairs employees provides insight but not direct evidence of project execution.

Conclusion:

The best method to confirm the validity of the activities reported by a grantee is to visit the grantee and assess whether the project execution aligns with the defined grant scope.

Internal Audit Standards and Practice Guides .