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1) How do you evaluate the results of a test of control?
2) Should sampling be applied to all audit procedures? Why or why not?
3) How do sampling results affect an audit conclusion?

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1) How do you evaluate the results of a test of control?
The results of tests of controls either support or refute the contention that the operational effectiveness of internal control procedures are reliable. In other words, the results of a test of control will either support or refute this contention. One of the results of test of controls relate to whether account balances and classes of transaction are accurate, full, and valid. This is the main objective of internal control operations. If the tests of control indicate that the account balances and classes of transaction are accurate, full, and valid, the auditor can depend on these balances and classes of transactions. This is very helpful because the auditor can then take a smaller sample size to ascertain the reliability, validity and the correctness of account balances and classes of transactions. ...

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Hatim Baxamusa, MBA
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  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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