26. Test of Control

Test of control

Meaning

An audit procedure 

* designed to evaluate the operating effectiveness of controls 

* in preventing, or detecting and correcting, material misstatements at the assertion level.

Why and When (Circumstances)?

The auditor shall design and perform tests of controls to obtain sufficient appropriate audit evidence as to the operating effectiveness of relevant controls when:

* He expects that the controls are operating effectively, or

* Substantive procedures alone cannot provide sufficient appropriate audit evidence at the assertion level.

In designing and performing tests of controls, the auditor shall obtain more persuasive audit evidence the greater the reliance the auditor places on the effectiveness of a control.

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