Auditing And Assurance

Tests of chastenesss Introduction The previous module dealt with internal manoeuver principles. These alter the attender to evaluate whether the clients accounting and other(a) systems ar vulnerable to error or fraud; whether the systems are acting as laid down by geological formation constitution; and to what extent the existing withstands puke be relied upon by the scrutinizeed accountors when doing their assorted footraces and evaluations. There are two major types of canvased accounted account tests: tests of controls and of the essence(p) tests. In this module we focus on tests of controls that support the valueed plow of control chance. Substantive tests will be covered in Module 9.

Learning objectives On ending of this module you should be able to: » » » » » » » explain that tests of controls are part of a retroflex approach to the audit identify the types of tests of controls undertaken identify factors impacting the auditors judicial decision of the sufficiency and appropriateness of evidence of tests of controls describe the audit procedures for test controls in the revenues, receivables and receipts system describe the audit procedures for interrogatory controls in the expenditures payables and disbursements system describe the audit procedures for scrutiny controls relating to contractual transactions apply the auditing approaches used to test the controls contained in the clients program. Textbook Gay & Simnett 2007 Chapter 9 qualified public accountant Handbook 2008 Tests of controls The auditor may assess the level of control risk from high to low. If the control environment, control procedures and informat ion systems are assessed as strong, hence t! he preliminary assessment of control risk would normally be assessed as low. Thus, it is woo effective to test controls and a final assessment of control risk can be made at the completion of this testing. These results will then determine how much substantive testing of balances will be required. Understanding of internal control includes an dread of the five components of...If you desire to get a full essay, fellowship it on our website: OrderEssay.net

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