- This topic has 1 reply, 2 voices, and was last updated 2 years ago by Kim Smith.
- You must be logged in to reply to this topic.
Instant Poll - Read and post comments:
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
What exactly are control objectives and procedures? is it the same thing as ‘recommendation’ section in I.C questions?
I know for Audit Procedures its either Substantive Procedures(AP/TOD) or Compliance Procedures(TOC) depending on the I.C system(weak or strong).
But, for Control objectives and procedures i fail to understand when and how to use it.
Like i said, my guess would be that it is used when asking for ‘recommendation’ in I.C questions.
Please help. I’m really confused.
If you download our notes you will find that they are searchable “control objectives” will take you to chapter 13 where there are numerous examples.
Control procedures/processes/activities require actions to achieve control objectives.
For example – to ensure that goods are not despatched to a bad credit risk (objective), credit checks must be performed and credit limits set for each customer (procedure).
A recommendation to address a weakness is therefore to take action/perform a control procedure.
Take care with your terminology – I would take a “compliance procedure” to mean a control procedure – i.e. an action by the client in its system of internal controls.
A TOC is a test on the effectiveness of the client’s controls. E.g. following on from above example, auditor would check that there is a credit reference on file for a sample of new customers.