[greeneyesCPA]

When trying to understand an entity, the auditor is not required to test the effectiveness of the internal control. The auditor must only evaluate the “design” of the control. Evaluating the design of the control informs the auditor whether the control can detect and fix material misstatements. My question is, when does the auditor actually test the Internal Controls?

FAR Passed
BEC Passed
AUD Passed
REG Passed

[Anonymous]

When they plan on placing reliance on the effectiveness of an entity's internal control to reduce the nature, timing, and extent of their substantive procedures.

[Anonymous]

During the Test of Controls.

The six steps are

1. Understand the IC

2. Document the IC (Flowcharts, ICQ, Naratives, Design Trees etc.)

3. Assess RMM

4. Test of Controls

5. Reassess RMM

6. Document Conclusion of IC

During the Test of Controls and auditor will reperform, inquire, inspect, and observe the IC to evaluate the effectiveness.

I think…lol

[jkey57]

Another auditing question, green eyes?! That other one hurt my confidence!

BaseballCPA's answer + required when auditing an issuer.

I think that's right…

[greeneyesCPA]

@jkey… Hey… This cpa thing ain't no joke. 😉

I'm going to keep posting questions… I think it will help things stick.

When is your exam?

FAR Passed
BEC Passed
AUD Passed
REG Passed

[jkey57]

@greeneyes – I hear that! I sent in my transcripts awhile back (takes forever in Illinois!!!) and I should get the go ahead in the next few weeks. If all goes as planned, 3rd week of April. This will obviously be my first exam and I'm banking on the idea that if I do nothing, literally nothing, but study, I can hopefully knock these out by the end of summer. That's the plan at least???

How about you? When are you up to bat?

[greeneyesCPA]

I'm studying full-time. I'll take it april 2.

FAR Passed
BEC Passed
AUD Passed
REG Passed

[Author]

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