Audit testing procedures
Example: Qualitative analysis: control testing
As part of the qualitative analysis, the auditor determines the
cause of each misstatement found and, for each stratum,
categories the misstatements as atypical, systematic or random.
For example, assume:
- five random exceptions were found in the 25 items selected in
stratum 1, and
- no exceptions were found amongst the 10 items selected in
stratum 2.
- further investigation revealed that of the 25 credit advices
selected from stratum 1, five were required to be approved by Beta
and 20 were required to be approved by Gamma, the less experienced
employee.
- all five exceptions were credit advices that should have been
approved by Gamma and that no explanation was offered or could be
found as to why the credit advices were not approved.
These exceptions (deviations from control procedures) then may be
summarized as follows:
| Stratum |
Employee |
Number of
deviations |
|
Atypical |
Systematic |
Random |
| 1 |
Beta |
nil |
nil |
nil |
| 1 |
Gamma |
nil |
nil |
5 |
| 2 |
Beta |
nil |
nil |
nil |
The next step is a quantitative
analysis of these exceptions.
Audit testing procedures, index
page
Copyright, Australian Educational Research
Pty Ltd. Any person accessing this site agrees to the
Terms of Use.