ACCA AA Syllabus C. Internal Control - How Auditors Identify Deficiencies - Notes ^{2 / 3}

So now the system is documented it is time to see if:

• The controls are implemented?

• The controls are effective?

To do this we use tests of controls

Tests of Controls will be performed to test the effectiveness

The tests concern

• How controls were applied

• The consistency of the application

• Who applied them

Typical tests include:

• Walkthrough tests (follow a transaction through the system)

• Observation (Eg Observe the stock count)

• Computer aided audit techniques