[Beyond]

Hi,

I am having trouble understanding what is being looked at for test of details as control test. In my job test of details is a substantive at the individual transaction level where as signatures are a control test. I just don’t see how test of details fits as a control test. The questions is in regards to Wiley’s Q:

The objective of tests of details of transactions performed as tests of controls is to
Monitor the design and use of entity documents such as prenumbered shipping forms.
Determine whether controls have been implemented.
Detect material misstatements in the account balances of the financial statements.
Evaluate whether controls operated effectively.

Thanks,

[McLoven]

Hi,

I think what is throwing you off is the term “test of details”. You are correct that it is a substantive procedure, however test of details can be used to describe control testing. Since in auditing, test of detail is looking at support tracing/vouching to records, reviewing for approval, etc. So in essence when you control test, you may also be looking at support you would look at if you substantively test as well. However, the goal of controls is to prevent or detect material material misstatements on the financial statements. With that said, control testing is to test whether those controls were operating effectively for the year end.

[Author]

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