In the planning stage of an audit the internal control environment is evaluated to determine what audit testing should be planned to assess the adequacy of controls. As well as to determine that results that were protected by those controls are reliable. Often the controls anticipated in the planning stage are dissimilar to the actual controls observed during the audit. When this occurs, the auditor has many options.
What adjustments would you recommend if you were the auditor who found these control differences? Since “skipping the audit is not one of the options” what would you recommend be focused on? The long list includes, yet not limited to:
testing the new controls
ignoring the new controls
proceed with the audit tests that were planned
create a modified audit test that captures the impact of the new controls
document the new controls
update the audit workpapers for the next audit
In some cases, multiple options will be needed in response to this change in the control environment. An experienced auditor will create a professional and logical response taking into consideration the risks presented and the importance of the control, account, or process being audited.
Prepare a paper discussing the answers to the questions in the description above.
Research is not directly required to answer these questions.
You have reviewed chapters that have looked closely at the control environment and risk evaluations
. Use your assessment of those audit processes/activities to clarify at least a 5-step process you would recommend in response to the issue noted. Citing references and page # is required.
Please use Chapters 3-5.
