6. Test of Controls

Question 1

6. What are the 5 ways to test controls?

Answer 1

Reperformance
Recalculation
Inspection
Observation
Enquiry (must be used with others)

Question 2

6. What does a description of a test of a control have to include to be robust (best version)?

Answer 2

It must be clear enough for another auditor to come in and follow.
Where is the evidence coming from?
What is the control (someone sighting, double checking etc. is there evidence of that)?
What is the timing if relevant?

Question 3

6. What are the two ways to select a sample to test?

Answer 3

Statistical - random, systematic, monetary unit sampling

Non-Statistical - Haphazard sampling