Operational effectiveness refers to the effectiveness of the operation of internal control procedures. Management impliedly assert that internal control procedures are effective as to their operation. If an auditor plans reliance on these controls, the auditor gathers evidence of such effectiveness.
Evidence of the operational effectiveness of controls is particularly relevant to the revised assessment of control risk, CR3, in the control testing stage of the audit.
Evidence gathered in relation to the effectiveness of operation of an internal control procedure is, assuming the design of the control is effective, evidence that the control is operating as planned (or as designed). It is not evidence that the control procedure has achieved it's objective [fn].
Evidence that the control procedure is operating as planned may include evidence that the procedure is executed at the planned time, by the person proposed, continuously throughout the period of intended reliance and supervised as planned.
Procedures used to gather this evidence include observation, inspection and inquiry. Where the control procedure is computerized, Computer Assisted Audit Techniques such as the integrated test facility, the embedded audit module and generalized audit software may be used.
See also design effectiveness.
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