The auditor needs to assess if the system is implemented correctly and is effective
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