Week 5 - Which Controls Should we Test Flashcards
1
Q
Depends on 1
A
Size, nature and complexity of the business
2
Q
Depends on 2
A
Risks identified
3
Q
Depends on 3
A
Legal/regulatory framework
4
Q
Depends on 4
A
Financial and management systems
5
Q
Depends on 5
A
The materiality determined by the auditor (ISA 320)
6
Q
To test for compliance -
A
Are controls being applied as documented?
7
Q
Tests - sample test orders to confirm that:
A
- only approved staff can raise purchase orders
- orders can only be placed with approved suppliers
- all orders are properly authorised
