Objectives
- Explain the professional standards related to and rationale for understanding and testing internal controls
- Discuss the professional standards related to testing controls for operating effectiveness
- Illustrate the appropriate level of linkage between the work performed in testing internal controls, control reliance, and reporting on internal controls
- Identify impact of a control reliance strategy on the detailed audit plan
- Distinguish between GITC and application controls
- Identify the four major categories of GITC
- Discuss when it is sufficient for the auditor to understand GITC and when testing is useful or required
- Identify specific controls in each of the GITC categories
Prerequisite
Familiarity with auditing and accounting and reporting standards