{"id":13498,"date":"2023-06-12T13:29:18","date_gmt":"2023-06-12T09:59:18","guid":{"rendered":"https:\/\/bilangozareshgar.ir\/a-four-step-approach-in-testing-controls-in-auditing\/"},"modified":"2023-06-12T13:32:54","modified_gmt":"2023-06-12T10:02:54","slug":"a-four-step-approach-in-testing-controls-in-auditing","status":"publish","type":"post","link":"https:\/\/bilangozareshgar.ir\/en\/a-four-step-approach-in-testing-controls-in-auditing\/","title":{"rendered":"A four-step approach in testing controls in auditing"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<html><body><p>[vc_row][vc_column][vc_column_text css=&rdquo;.vc_custom_1686564077265{background-image: url(https:\/\/bilangozareshgar.com\/wp-content\/uploads\/2023\/05\/3c35033c0a47417caf61ab2858aeb6bd-300&times;152-1-150&times;150-1.jpg?id=11317) !important;background-position: 0 0 !important;background-repeat: repeat !important;}&rdquo;]<\/p>\n<h3 dir=\"ltr\"><strong>A four-step approach to testing controls in auditing:<\/strong><\/h3>\n<div style=\"width: 1280px;\" class=\"wp-video\"><video class=\"wp-video-shortcode\" id=\"video-13498-1\" width=\"1280\" height=\"720\" loop autoplay preload=\"metadata\" controls=\"controls\"><source type=\"video\/mp4\" src=\"https:\/\/bilangozareshgar.com\/wp-content\/uploads\/2023\/06\/mixkit-accountant-using-a-calculator-to-calculate-expenses-47416-large.mp4?_=1\" \/><a href=\"https:\/\/bilangozareshgar.com\/wp-content\/uploads\/2023\/06\/mixkit-accountant-using-a-calculator-to-calculate-expenses-47416-large.mp4\" target=\"_blank\" rel=\"noopener\">https:\/\/bilangozareshgar.com\/wp-content\/uploads\/2023\/06\/mixkit-accountant-using-a-calculator-to-calculate-expenses-47416-large.mp4<\/a><\/video><\/div>\n<p dir=\"ltr\">We want to tell you the test of controls in the audit so that you can familiarize yourself with the steps.<\/p>\n<p dir=\"ltr\"><strong>The first stage of evaluating benefits and costs:<\/strong><\/p>\n<p dir=\"ltr\">When the auditor believes that the employer&rsquo;s controls are effective.<\/p>\n<p dir=\"ltr\">The first step is to assess the potential benefits of reliance.<\/p>\n<p dir=\"ltr\">The auditor should estimate the time required to achieve lower control risk and compare this to the time savings resulting from reducing substantive procedures.<\/p>\n<p dir=\"ltr\"><strong>The second step is to identify specific controls for testing:<\/strong><\/p>\n<p dir=\"ltr\">Whenever the auditor considers it cost-effective to rely on controls according to his initial judgment.<\/p>\n<p dir=\"ltr\">It should identify specific controls for testing.<\/p>\n<p dir=\"ltr\">Ideally, the employer will have key controls that greatly reduce the likelihood of a material misstatement.<\/p>\n<p dir=\"ltr\">Not all controls are created equal.<\/p>\n<p dir=\"ltr\">Some of them are more important in combating significant distortions.<\/p>\n<p dir=\"ltr\">The auditor should focus on identifying these controls and determine how much they can be relied upon.<\/p>\n<p dir=\"ltr\"><strong>The third stage of selection and implementation of control tests:<\/strong><\/p>\n<p dir=\"ltr\">Once the best controls for <a href=\"https:\/\/bilangozareshgar.com\/%da%a9%d9%86%d8%aa%d8%b1%d9%84-%da%a9%db%8c%d9%81%db%8c%d8%aa\/\" target=\"_blank\" rel=\"noopener\">the test are identified.<\/a><\/p>\n<p dir=\"ltr\">The auditor should choose the most effective and efficient way to achieve trust.<\/p>\n<p dir=\"ltr\"><u>There are four basic ways to test controls:<\/u><\/p>\n<p dir=\"ltr\"><strong>1- Inspection:<\/strong> Inspection is the re-execution of a control to ensure that the correct results are obtained.<\/p>\n<p dir=\"ltr\"><strong>2- Re-execution:<\/strong> Re-execution is the re-execution of a control to ensure that the correct results are obtained.<\/p>\n<p dir=\"ltr\">For example, the auditor re-executes a discrepancy to verify that it was performed correctly.<\/p>\n<p dir=\"ltr\"><strong>3-Inquiry<\/strong>: An inquiry is an interview with the employer&rsquo;s employees to obtain evidence about the effectiveness of a control.<\/p>\n<p dir=\"ltr\">For example, auditors ask the chief accountant to explain the process of reviewing capital expenditures at the end of each month.<\/p>\n<p dir=\"ltr\"><strong>4-Observation:<\/strong> Observation is the objective observation of the running rejection control.<\/p>\n<p dir=\"ltr\">For example, let&rsquo;s assume that the management group of the employer meets every month to check the accuracy of the financial statements.<\/p>\n<p dir=\"ltr\">The auditor can attend one or more of these meetings to see what the process is like.<\/p>\n<p dir=\"ltr\">Years ago, organizations relied heavily on audits and re-enactments to test controls.<\/p>\n<p dir=\"ltr\"><strong>The fourth stage of achieving results:<\/strong><\/p>\n<p dir=\"ltr\">After completing the control tests, the auditor must draw a conclusion.<\/p>\n<p dir=\"ltr\">whether or not it should rely on controls and how much.<\/p>\n<p dir=\"ltr\">If the tests are properly designed and implemented.<\/p>\n<p dir=\"ltr\">Test results should confirm the initial assessment of control risk.<\/p>\n<p dir=\"ltr\"><a href=\"https:\/\/taati.ir\/BookView\/1779021\/%d8%b6%d8%b1%d9%88%d8%b1%d8%aa-%d8%af%da%af%d8%b1%da%af%d9%88%d9%86%e2%80%8c%d8%b3%d8%a7%d8%b2%d9%8a-%d8%ad%d8%b3%d8%a7%d8%a8%d8%b1%d8%b3%d9%8a-%da%86%d8%b1%d8%a7%d9%8a%d9%8a-%d9%88-%da%86%da%af%d9%88%d9%86%da%af%d9%8a\" target=\"_blank\" rel=\"noopener\">Written by: Thomas Hooke<\/a><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/body><\/html>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text css=&rdquo;.vc_custom_1686564077265{background-image: url(https:\/\/bilangozareshgar.com\/wp-content\/uploads\/2023\/05\/3c35033c0a47417caf61ab2858aeb6bd-300&times;152-1-150&times;150-1.jpg?id=11317) !important;background-position: 0 0 !important;background-repeat: repeat !important;}&rdquo;] A four-step approach to testing controls in auditing: We want to [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":13303,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","yasr_overall_rating":0,"yasr_post_is_review":"","yasr_auto_insert_disabled":"","yasr_review_type":"","footnotes":""},"categories":[2936,4196,4195],"tags":[3230,3237,3232,3229,3234,3236,3233,3231,3235,3238],"class_list":["post-13498","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-audit","category-internal-control","category-4195","tag-anger-control-test","tag-control-and-content-test","tag-control-test","tag-control-test-in-auditing","tag-darna-sharifis-anger-control-test","tag-internal-control-and-monitoring-test","tag-internal-control-test","tag-quality-control-test","tag-spielberger-anger-control-test","tag-stress-control-test"],"acf":[],"yasr_visitor_votes":{"stars_attributes":{"read_only":false,"span_bottom":false},"number_of_votes":0,"sum_votes":0},"_links":{"self":[{"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/posts\/13498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/comments?post=13498"}],"version-history":[{"count":0,"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/posts\/13498\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/media\/13303"}],"wp:attachment":[{"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/media?parent=13498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/categories?post=13498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/tags?post=13498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}