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Hello Gromit
i am really struggling to learn the detailed stages of sales, purchases cycles etc in bpp text book where they have suggested lengthy objectives, controls and test of controls for every single stage within each cycle.
is there a quicker and simpler way to master these questions? Would it be the right approach to jump on revision kit (bpp or any other) straight away for these questions along with sales cycle lectures (both main lectures and revision lectures) here on OT?
please advise as i am really finding it difficult to decide what to do about this.
thanks
The BPP text is very comprehensive on this subject. However, I do not think it would be a good use of your time to fry to learn all the cycles to a high degree of accuracy and I’m sure most students don’t. I suggest that you confine yourself to the OT lectures and try to understand the principles involved:
Capture (record) transactions as soon as possible
Make sure there is some way of tracing a transaction from start to finish and back again.
Look for segregation of duties
Ask ‘What can go wrong?’ Eg transactions going missimg, amounts containing errors.From that, you should be able to invent some reasonable controls and criticise systems presented in a question.
ok thanks. so for example if i watch your explanation lecture of sales cycle and do as many past paper questions (revision kit) as i can then eventually ill be able to get a comprehensive understanding of this. is that right?
thank you gromit. Yes this approach has started working for me. thanks for the advice.
i have 1 more question related to this. i am good in terms of pointing out and describing and identifying deficiencies in internal control system however i am still struggling in terms of suggesting the test of controls for particular deficiencies in a given scenario.
do we have to always use the concept of EIOU ONLY for test controls? can i use any element of EIOU to suggest a test of control which i as an auditor feel is suitable? or are there any prescribed Test of controls for particular set of deficiencies?
for example if i want to investigate segregation of duties then as an auditor can i suggest any of the EIO to test this?
please advise
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