CAT / FIA FAU Syllabus C. Internal Control - How Auditors Identify Deficiencies - Notes 2 / 3
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
Audio Player
Previous
How Auditors Record Systems
Syllabus C. Internal Control
C2. Techniques to record and evaluate accounting systems
Next up
Evaluation of Internal Controls
Syllabus C. Internal Control
C2. Techniques to record and evaluate accounting systems