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Hi
Test of controls and control procedures are two different tnhings. right?
Test of control includes:
Inspection of document
Esquires anount internal controls
rePerformance of control procedure
Examination of evidence
Observation of controls
Control of procedure includes:
What are the procedures auditor should do ;
Segrigation of duities
Physical control
Perfermonce review
Authorisation
correct?COMPLETELY different – control activities/procedures are just one element of the internal control system that MANAGEMENT implements over the entity’s business and financial processes.
The AUDITOR can only place reliance on these controls by testing their operational effectiveness i.e. “tests of controls”.Yes – except the line “What are the procedures auditor should do ;” seems random.
oh k. In open tutu ion notes page 65- its mentioned Control activities that means control procedures. Right?
And Test of controls are EIOU which you have explained in your video.Thanks 🙂
“Control activities” is a more specific term which deals with only one component of IC (see page 64). Although “procedures” and “activities” may be used interchangeably, control procedures is a broader term because there will be control procedures within the other four components.
Yes EIOU – but tests of control cannot be inquiry alone (is not sufficient to determine whether a control has been implemented/operates).
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