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In compliance testing you gather evidence with the objective of testing an organization's compliance with control procedures, eg. when you run a report to verify that certain controls had been applied over a database table.
In substantive testing, you gather evidence to evaluate the integrity of data, a transaction or other information. eg. you run a report to verify if the amount paid to vendors is accurate.
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What procedures if any do professional standards require auditors to performwhat procedures if any do professional standards require auditors to perform?
Professional standards require auditors to perform a variety of procedures to ensure the accuracy and reliability of financial statements. These include risk assessment procedures, tests of controls, substantive testing, and analytical procedures. Additionally, auditors must gather sufficient and appropriate evidence to support their conclusions and express an opinion on the financial statements. Compliance with ethical standards and maintaining professional skepticism throughout the audit process is also essential.
How you do statutory audit?
A statutory audit involves a systematic examination of a company's financial statements and records by an independent auditor to ensure compliance with legal and regulatory requirements. The process typically includes planning the audit, assessing risks, evaluating internal controls, performing substantive testing, and gathering sufficient evidence to form an opinion on the financial statements. The auditor then issues an audit report, which expresses their opinion on whether the financial statements present a true and fair view of the company's financial position. Finally, the auditor communicates findings and recommendations to the management and stakeholders.
Name four primary components of the bank secrecy act?
A system of internal controls, including risk-based policies and procedures; designated individual responsible for compliance; ongoing training; and independent testing.
What is the difference between a review and an audit?
A review is a less intensive evaluation focused on providing limited assurance that financial statements are free from material misstatement, often involving inquiries and analytical procedures without a detailed examination of evidence. In contrast, an audit is a more comprehensive assessment that seeks to provide a higher level of assurance through thorough testing of transactions and internal controls. Audits typically involve a detailed verification of financial records and compliance with accounting standards. Essentially, reviews offer a quicker, less rigorous assessment, while audits provide a deeper, more authoritative evaluation.
What is the purpose of two way testing in payroll audit?
The purpose of two-way testing in a payroll audit is to ensure the accuracy and reliability of payroll data by cross-verifying it through two distinct methods or sources. This process helps identify discrepancies, errors, or potential fraud by comparing results from different perspectives, such as employee time records and payroll calculations. By implementing two-way testing, auditors can enhance the integrity of the payroll system and ensure compliance with regulations, ultimately safeguarding the organization’s financial resources.
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
What is substantive test of transaction?
testing for completeness and existance.
Software testing related interview questions?
Here are 15 software testing interview questions: What is software testing? What is the difference between functional and non-functional testing? What is the difference between manual and automated testing? What are the different types of testing? What is a test case? What is regression testing? What is the difference between black-box and white-box testing? What is the V-Model of software testing? What is exploratory testing? What is smoke testing? What is the difference between severity and priority of a bug? What is the purpose of test automation? What is the defect life cycle? What is the difference between Load Testing, Stress Testing, and Performance Testing? What is the role of a Test Manager in a testing team?
What is difference between Maintainability testing and Maintance testing?
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Difference between functionality testing and load testing?
Functionality testing is what is expected. Load testing is what it actually did.
Why do Auditors use Substantive Procedures?
Substantive procedures performed by the auditor during the substantive testing stage of the audit that gather evidence as to the completeness, validity and/or accuracy of account balances and underlying classes of transactions.
What is the major difference between regression testing and retesting?
regression testing is a white box testng
What is the difference between testing a single mean and testing the difference between two means?
A single mean is used in testing to compare a single variable to a population mean in order to determineÊif there is aÊdifference. Two means are used in testing to compare two populations to see if there are variances between the two variables.Ê
What is difference between Smoke and sanity testing with examples?
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What is difference between thread based and use based strategies for integretion testing in object - oriented methodology?
difference b/w thread based and use based testing
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.
