Recording internal controls
Recording internal controls documents how relevant processes and controls operate, using methods such as narrative notes, flowcharts or questionnaires. It helps the auditor understand the system and identify potential deficiencies; the auditor corroborates information and considers design and implementation.
Worked example
The auditor prepares a flowchart showing authorisation, receipt and payment steps in the purchases system.
Common mistake
A flowchart or questionnaire by itself does not prove the controls operated effectively throughout the year.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |