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Sir,
I have seen the mnemonic AEIOU representing Analytical procedures, Enquiry, Inspection, Observation and RecalcUlation.
Do these procedures relate specifically to Tests of control or are they related to substantive procedures?
Thank you!
Analytical procedures as audit evidence are STRICTLY substantive
Enquiry alone is never sufficient as a test of control. As a substantive procedure it is really “enquiry and confirmation” (e.g. an external confirmation/circularisation request)
Inspection – of a document to determine whether it has been approved or not would be a ToC, but inspecting an asset to confirm its existence is substantive
Observation – means “of a procedure” – i.e. ToC
RecalcUlation – is substantive (as is anything which confirms a monetary amount). The ToC equivalent of this is “reperformance”.
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