First-hand direct observation of the controls in operation is the best way to confirm the existence and operating effectiveness of information systems controls because it provides the auditor with the most reliable and persuasive evidence. Direct observation involves inspecting the physicaland logical aspects of the controls, such as the hardware, software, network, data, procedures, and personnel involved in the information systems. Direct observation also allows the auditor to verify that the controls are functioning as intended, and to identify any deviations or weaknesses that may affect the reliability of the information systems. Direct observation can be performed by using various techniques, such as walkthroughs, inquiries, inspections, reperformance, and analytical procedures1. References = Auditing Standard No. 13, The Auditor’s Responses to the Risks of Material Misstatement, PCAOB, 20101