Tests of Controls
Accounting glossary · Understand, connect, apply
Tests of controls assess whether selected controls operate effectively in preventing or detecting relevant misstatements.
Example
An auditor inspects a sample of exception reports for evidence that the designated supervisor reviewed and resolved discrepancies.
Remember the difference
A control can be well designed and still operate inconsistently. Testing its operation requires evidence about what happened in practice.
Browse the accounting glossary · PCAOB reference: AS 2301
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