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Internal Control Questionnaire (ICQ) and Internal Control Evaluation Questionnaire. This area carries a 5 mark in the exam but it is an area that confuses me alot. Why does an auditor need the ICQ and ICEQ? Do you use this technique on risk assessment or substantive testing? My understanding is that these are questions one poses to management of the audit client whether the controls are working on specific area of concern. But my understanding is hardly worth a half mark. Please help!
They are not normally used together.
They are usually classified as documentation techniques of the internal control system. They are certainy not substantive tests.
ICEQ asks about whether control objectives are met. Eg Can supplier invoices be paid more than once. You want the answer ‘No’ but there could be a number of possible controls to prevent this.
ICQ ask about controls eg are paid invoices cancelled? Here you want the answer ‘Yes’.
ICQs rather ‘spoon feed’ the auditor. ICEQs are more flexible and require more skill.
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