Page 187 - Auditing Standards
P. 187
As of December 15, 2017
.27 Matters that could affect the necessary extent of testing of a control in relation to the degree of
reliance on a control include the following:
The frequency of the performance of the control by the company during the audit period;
The length of time during the audit period that the auditor is relying on the operating effectiveness of
the control;
The expected rate of deviation from a control;
The relevance and reliability of the audit evidence to be obtained regarding the operating
effectiveness of the control;
The extent to which audit evidence is obtained from tests of other controls related to the assertion;
The nature of the control, including, in particular, whether it is a manual control or an automated
control; and
For an automated control, the effectiveness of relevant information technology general controls.
Note: AS 2315, Audit Sampling, establishes requirements regarding the use of sampling in
tests of controls.
Timing of Tests of Controls
.28 The timing of tests of controls relates to when the evidence about the operating effectiveness of the
controls is obtained and the period of time to which it applies. Paragraph .16 of this standard indicates that
the auditor must obtain evidence that the controls selected for testing are designed effectively and operated
effectively during the entire period of reliance.
.29 Using Audit Evidence Obtained during an Interim Period. When the auditor obtains evidence about the
operating effectiveness of controls as of or through an interim date, he or she should determine what
additional evidence is necessary concerning the operation of the controls for the remaining period of reliance.
.30 The additional evidence that is necessary to update the results of testing from an interim date through
the remaining period of reliance depends on the following factors:
The possibility that there have been any significant changes in internal control over financial
reporting subsequent to the interim date;
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