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The audit manager
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∙ 14y ago
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What is compliance and substantive test in auditing?
In compliance testing you check the design, implementation and operations of controls and substantive testing you actually verify the accuracy of the transactions e.g. test samples
What is compliance and substantive tests in internal auditing?
In compliance testing you check the design, implementation and operations of controls and substantive testing you actually verify the accuracy of the transactions e.g. test samples
When was the sas 70 auditing standard introduced in the us?
The Statement on Auditing Standards No. 70, or SAS 70, was introduced in the United States in April 1992. SAS 70 is concerned with the internal auditing controls of service organizations.
What is the difference between auditing around and auditing through the computer?
AUDITING THROUGH THE COMPUTER describes the various steps taken by auditors to evaluate client's software and hardware to determine the reliability of operations that is hard for human eyes to view and also test the operating effectiveness of related computer controls, e.g., access control WHILE AUDITING AROUND THE COMPUTER is one of the several methods that auditors can use to evaluate a client's computer controls. It involves picking source documents at random and verifying the corresponding outputs with the inputs. The client's computerized information system processes the 'test transaction'. For example, multiplying unit price with the number of products sold to ensure that the total revenue figure is correct.
What is detail tie-in?
A Test in auditing that test the articulation of the same number in different parts of the report.
What is the purpose of compliance auditing?
The purpose of compliance auditing is to prove an organization with a review of their adherence to regulatory guidelines. A compliance audit are reviews of risk management procedures, security policies, and user access controls.
What is dual testing in auditing?
Dual testing consists of two forms of testing that are used for auditing purposes. Both substantive tests or tests of controls are used to gather evidence that the client verification procedure was effective.
What are some of the responsibilities of the audit committee?
External auditing process Internal auditing process Internal controls Conflicts of interest (code of corporate conduct, fraud presentation) Financial reporting process Regulatory and legal matters
What are the differences between substantive test and test of controls?
In the auditing phase, the auditor first carries "test of controls" to verify if the organisation's financial statements are worth relying upon. If the auditor is not satisfied with this, he then carries "substantive test" which is a comprehensive analysis. For example, to test the accuracy of figure of "Sales" in income statement, the auditor will look at your Sales system, i.e. the internal controls. If they work fine, the auditor will be satisfied that this Sales figure cannot be wrong. But if the Sales system is not properly structured, for example, credit checks not performed, sales made without customer on the database, sales still made to bad debts, etc., these all are weaknesses in internal controls, so the auditor will now carry a substantive test in which he assess whether the given figure is accurate or not. For example, by using ratios, analytical procedures, inquiries, confirmation letters from receivables etc.
What are domain-wide controls that specify password requirements account lockout settings auditing user rights security options and more?
Security policies
Accountancy is necessary while auditing is a luxury comment?
I think what you're saying is that accounting is necessary to keep the company's books and records straight ... but auditing is a luxury as it is just validation of the accounting (as well as some other checks around fraud, internal controls, etc.)
When to use substantive test and test of controls during audit of entity?
When there is material misstatement
