Auditing And Assurance

Tests of chastenesss Introduction The previous module dealt with internal oblige principles. These enable the attender to evaluate whether the clients accounting and new(prenominal) systems ar vulnerable to error or fraud; whether the systems be acting as laid down by placement constitution; and to what extent the existing ascendences puke be relied upon by the scrutinizeed accountors when doing their assorted footraces and evaluations. There are two major types of take stocked accounted account tests: tests of controls and of the essence(p) tests. In this module we focus on tests of controls that support the prizeed need of control chance. Substantive tests will be covered in Module 9.

Learning objectives On uttermost of this module you should be able to: » » » » » » » explain that tests of controls are part of a ingeminate approach to the audit identify the types of tests of controls undertaken identify factors impacting the auditors sound judgement 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 examination 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 restricted 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 informati on systems are assessed as strong, hence th! e preliminary assessment of control risk would normally be assessed as low. Thus, it is toll 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 arrest of the five components of...If you desire to get a full essay, align it on our website: OrderEssay.net

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