Question 1: List 6 examples of forms that are used in a manual control system. 1) Requisition Form 2) Purchase Order Form 3) Goods Received Form 4) Cost Prices Form 5) Credit Notes 6) Transfer Form 7) Valuation ReportsAssessment – 1 – Short Answers Question 2: Why is it important to constantly monitor your control system?
4. IT-dependent manual controls (combination of control types) Controls are classified to assist the auditor in understanding the type of risk each control addresses, how it addresses those risks and the potential audit evidence that a control provides.
Techniques for testing controls: Enquiry – involves the auditor using questioning skills to determine how the control is completed and whether it appears to have been carried out properly and on a timely basis. Observation – involves the auditor observing the actual control being performed.