Perform tests of controls Could the procedure be performed Select a sample

Perform tests of controls could the procedure be

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Perform tests of controls Could the procedure be performed?Did the control operate as designed? Consider if alternative test of controls procedure can be performed OR Sample item is a deviation Make sure all items sampled have been tested Sampled item is an anomaly; exclude results from overall control assessment and separately evaluate the impact Does actual deviation rate for sample exceed expected deviation rate? Control is operating effectively Audit strategy has determined controls will be relied on Determine nature For example: • Enquire of personnel about the performance of their duties • Observe personnel performing the control • Inspect documents and reports indicating performance of the control • Re-perform the control activity (e.g. within the IT system) Determine timing • Test at interim/final and ensure controls are considered throughout the whole period under audit • Can use evidence from the previous audit periods if have evidence (enquiry and observation/inspection) that no significant changes have occurred since the last audit • Must test operations effectiveness at least once every 3rd audit • Must perform some tests of controls in the current year • Must test in current period if there is a significant risk for an assertion and intend to rely on related controls Determine extent • Assessed level of control risk • How frequently is the control activity performed (e.g. daily, monthly)? No Yes Yes Yes Yes Not exist
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Quick Reference Guide 9.2 Types of controls and testing controls Audit & Assurance Chartered Accountants Program Page 1 of 1 Quick reference guide 9.2 – Types of Controls and Testing Controls Manual Controls e.g. Signatures for authorisation General IT Controls (GITCs) • Controls over the computer environment – e.g. controls over program changes; data back-ups; system access controls CAATs Typical procedures using CAATs: • Match data across files • Re-perform automated controls • Re-calculate • Identify duplicate data • Identify missing data • Select samples that match specified criteria • Sort data by specified characteristic • Summarise, stratify, age data • Documentary evidence of control likely to exist • Nature of test – enquiry & inspection of documentation • Documentary evidence of control not likely to exist • Nature of test – enquiry & observation, or use CAATs IT Application Controls (ITACs) • Controls Automated – e.g. error messages for invalid input, pre-set data which can’t be over-ridden
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Quick Reference Guide 9.3 Selecting items for testing Audit & Assurance Chartered Accountants Program Page 1 of 1 Quick reference guide 9.3 – Selecting items for testing
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