Module 16 Flashcards
1
Q
What is a walkthrough?
A
where the auditor selects one or more transaction relation to a specific system and follows them through the system from initiation to settlement and reporting
NOT A TEST OF CONTROL
2
Q
What are the steps to determine whether a companies control activities can be relied upon?
A
- identify key controls
- assess the design of key controls
- test whether key controls are operated effectively
3
Q
What is a key control?
A
control that mitigates ROMM and the auditor intents to rely on
4
Q
What are the test of controls?
A
- enquiring
- inspection
- reperformance
- observing
5
Q
What are the reliability levels of each of the tests of controls?
A
enquiry -low
observation - medium
inspection - high
re-performance - high (best)
6
Q
What are the two types of test counts performed when attending the stock count?
A
Sheet to floor
floor to sheet
7
Q
Is the value of error found in a test of control important?
A
NO!
