What are four types of tests of controls

Assignment Help Auditing

Reference no: EM132368753

Topic - Execution of the audit-testing of controls

On completing the learning activities associated with this topic you should be able to

1. Outline the different types of controls.

2. Contrast the different techniques for testing controls.

3. Describe how to select and design tests of controls.

4. Compare and contrast the results of testing of controls.

Reading guide - References: Moroney, Campbell and Hamilton, Chapter 8.

Standards:

ASA 230: Audit Documentation

ASA 260: Communication with Those Charged with Governance.

ASA 315: Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment.

Review questions:

1. What are four types of tests of controls? Explain them and comment on the reliability of the evidence obtained from each.

2. Explain the purpose of (a) prevent controls and (b) detect controls. Why would it be important for an entity to have both types of controls?

3. Explain why reconciliations, such as bank reconciliations, are classified as detect controls.

4. Explain the concept of benchmarking and its benefits to the auditor.

5. A junior employee must prepare a bank reconciliation and submit it to the manager. Is this a prevent or detect control? Explain.

6. What is the difference between entity-level controls and transaction-level controls?

Reference no: EM132368753

Questions Cloud

What are the foreign direct investment requirements : What are the Foreign Direct Investment requirements for Russia?

Calculate the overhead rate for the next year : What are the effects, if any, of changing the com-pany's costing method? Specifically, are the differences between the two costing methods.

How are goods and services allocated in a market economy : How are goods and services allocated in a market economy?

Buying decision on a particular stock : How does looking at the option chain prices affect your buying decision on a particular stock? Can option prices help investors select stocks?

What are four types of tests of controls : What are four types of tests of controls? Explain them and comment on the reliability of the evidence obtained from each

Enforcement of international regulations : International trade agreements have been in the news recently, from Britain's decision to leave the EU to the United States pulling out of the agreement

General exports and technological exports : How can Japan's general exports and technological exports me explained as? EXPLAIN, EXAMPLES

Reach be on the production possibilities frontier : At the same time, the politician is unwilling to cut any other programs. Assuming the resources are already being efficiently used in other programs

How to evaluate the results of tests conducted on a sample : Topic - Sampling and overview of the risk response phase of the audit. Outline how to evaluate the results of tests conducted on a sample

User Account

All Pages