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I would like to understand why the correct order is not as mentioned in the book? In kaplan text we first ascertain the system and then document..
”As this is the first year you are auditing Flowers, it is necessary to understand and evaluate the company’s system of internal control. The audit firm’s policy requires the following steps to be taken when performing first year audits: ”
but in this answer the right order of steps is:
(1) Complete flowcharts and internal control evaluation questionnaires
(2) Perform walkthrough tests
(3) Perform tests of control
(4) Revise the audit strategy and audit planAscertaining and documenting go hand in hand and may be simultaneous. For example – the client presents the auditor with systems notes/flow charts,etc – that’s it – the auditor has ascertained and documented. In this case the auditor would then perform “walkthroughs” to confirm that the system, as documented, I think I am with you that IC EVALUATION could come next – before performing tests of control. Is that what you are asking? (I don’t have the Q/A to hand today.)
my concern is why the order isn’t 2,3,1,4. and to confirm if the above order is correct. as that is what is mentioned in the text too..
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