Which of the following is an example of technical evidence in an audit?

The selection of observation of software functionality as an example of technical evidence in an audit is appropriate because it directly involves examining the processes and performance of automated systems and applications that are critical to the information security management system. This type of evidence is objective and can be measured against established criteria or security controls.

By observing software functionality, auditors can validate that the software operates as intended and adheres to the organization’s security policies and technical standards. This evidence facilitates a clear assessment of the technical controls in place, thus helping to establish whether the information security management system is effectively implemented and maintained.

In contrast, interviews with staff may provide insights into processes and perceptions but do not yield direct technical evidence. Reviewing financial statements, while important for assessing an organization’s financial health, does not address the technical aspects of information security. Confirmation from third parties can provide valuable contextual information, but it does not directly reflect the technical capabilities of the organization’s systems. Hence, observation of software functionality stands out as the most direct form of technical evidence in this context.