Control Flashcards
controls & Systems Control Testing Sustantive testing
1
Q
control testing
A
- testing the design & effectiveness of intenal control
- Internal controls to stop material errors (PAIRS)
2
Q
substantive testing
A
- To detect material mistatments at assertion level in F.S
- review activity
- test details of transactions
3
Q
how to answer CONTROL question
A
Deficiency = Consequence = Recommendation
4
Q
Example 1 : If purchase invoices missing
A
Later payments and credibility with supplier hurt so they should file the receipts and regular sequence checks
5
Q
Example 2: Bank recs not performed regularly
A
incorrect errors within the F.S so recommend performing weekly basis by someone independent
6
Q
Eg. anything manually input
A
human error, upgrade to efficient it system
7
Q
eg. using automated systems
A
do sample checks of information
8
Q
numeric sequences
A
check over ensure sequence correct
9
Q
others
A
- data continuty
- access security checks
- existance checks
- segregation of dutys
- exception reports
10
Q
analytical stages during audit
A
- risk assesment - understand buisness and risk
- overall review- are f.s consistant
- using substantive testing where needed along side auditing techniques
