Page 71 - Audit Day 3 - Class Slides

Test of controls

• The operating effectiveness of a control consists of

two components:

• Design: The control can prevent, detect and correct a

material misstatement.

• Implementation: The control exists and the entity is

using it.

• Refer to ISA 315 (revised) paragraph A74 to A76

for a discussion of the nature and extent towards

the understanding of relevant controls.