Testing the Operating Effectiveness of Identified Controls

Picture this: You have decided to take a controls reliance approach on your audit engagement, and you have determined that the identified (relevant) controls have been effectively designed and implemented. So, what’s next? Well, now it’s time to test the operating effectiveness of those identified controls. But what exactly does that mean? This testing internal controls CPE eLearning course (1.0 CPE), you will learn about important considerations as it relates to testing the operating effectiveness of an identified control. This is a crucial step in obtaining relevant audit evidence and responding to identified risks. The course discusses how the nature, timing, and extent of testing is required to be designed and performed. Finally, you will work through an example scenario of testing a specific identified control.

Topics covered in this testing internal controls CPE course include:

• What is testing operating effectiveness?
• Designing tests of controls
• Performing and evaluating tests of controls

If you are an auditor who audits financial statements in accordance with Public Company Accounting Oversight Board (PCAOB) auditing standards, U.S. generally accepted auditing standards (U.S. GAAS) or International Standards of Auditing (ISAs) this course, part of the Internal Control: The Essentials course collection, is an absolute must. This course covers the following auditing standards: AU-C section 330 and AS 2201.

Interested in group discounts for your team or firm? Contact us to learn more.

 By the end of this course, you should be able to: 

• Distinguish between the nature, timing, and extent of testing identified controls
• Recognize an auditor’s responsibilities for testing the operating effectiveness of identified controls