In a prior audit, if controls unchanged since last tested Changes may mean there is no basis for continued reliance. The operating effectiveness of such controls should be tested in the current audit. In a prior audit, if controls changed since last tested The auditor may not rely on evidence obtained in prior audits for controls that mitigate a significant risk: those controls should be tested in the current period. In prior audits - controls over significant risks The auditor should obtain audit evidence whether changes in those specific controls have occurred after the prior audit through enquiry, in combination with observation or inspection. The auditor obtains audit evidence that the control operated effectively at relevant times.Īdditional audit evidence should be obtained for the remaining period about the nature and extent of any significant changes in internal control, e.g. The auditor only obtains audit evidence that the controls operated effectively at that time. If substantially different controls were used at different times during the period under audit, the auditor should consider each one separately. For significant risks, the auditor should test the controls in the current period. The timing of tests refers both to the period to cover (at a particular time or throughout a period) and to the time when the auditor will perform the test (interim period or period end) or not (reliance obtained in prior audits). Timing of tests of controls The timing of tests of controls depends on the auditor’s objective and determines the period of reliance on those controls. These detection controls are performed after transaction processing and provide management with assurance that a group or class of transactions has been processed completely, accurately and in accordance with the rules. Additional audit evidence may be obtained by testing monitoring controls, which focus on internal control system outputs and are performed on a regular basis.
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