What Are Tests Of Controls?

1.	What Are Tests Of Controls?
Answer» SAS 55 defines tests of controls as tests directed toward the design or OPERATION of an internal control to assess its effectiveness in preventing or detecting material misstatements in a financial statement assertion. Inquiry of company personnel, inspection of CLIENT DOCUMENTS and RECORDS, observation of client activities, and re-performance of controls REPRESENT some of the procedures used in performing tests of controls. SAS 55 defines tests of controls as tests directed toward the design or operation of an internal control to assess its effectiveness in preventing or detecting material misstatements in a financial statement assertion. Inquiry of company personnel, inspection of client documents and records, observation of client activities, and re-performance of controls represent some of the procedures used in performing tests of controls.

Answer»

SAS 55 defines tests of controls as tests directed toward the design or OPERATION of an internal control to assess its effectiveness in preventing or detecting material misstatements in a financial statement assertion. Inquiry of company personnel, inspection of CLIENT DOCUMENTS and RECORDS, observation of client activities, and re-performance of controls REPRESENT some of the procedures used in performing tests of controls.

SAS 55 defines tests of controls as tests directed toward the design or operation of an internal control to assess its effectiveness in preventing or detecting material misstatements in a financial statement assertion. Inquiry of company personnel, inspection of client documents and records, observation of client activities, and re-performance of controls represent some of the procedures used in performing tests of controls.

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