Test of Control Auditing and Assurance

Question: Discuss about the Test of Controlfor Auditing and Assurance. Answer: Capital Expenditure Committee Auditor should select sample of capital expenditure made during the year and review the minutes of capital expenditure committee meetings for confirmation about the purchase was authorized by the committee. Sample of purchase orders of capital expenditure should be checked for verification about the authorization by capital expenditure committee. Serial Number Auditor should choose the sample of non-current assets on location, verify the serial numbers recorded on the asset and authenticate it with the register of non-current assets. Auditor should also examine register of non-current assets and verify that serial numbers in the register are not duplicated. Goods Received Note (GRN) Auditor should pick the sample of Goods Received Note and evaluate it to find proper documentation has been done to classify nature of capital and revenue expenditure. Verify whether the GRN is initialed by the officer who is accountable for it. If the GRN is of capital nature auditor should also check if the entry has been done in the register of non-current assets also. Review of Assets Auditor should have discussions with the internal auditor about their inspection program. If inspection of assets is due between the current period and the end of the year, auditor should attend the inspection to observe effectiveness of controls. Auditor should also review the working papers and internal audit reports to verify the controls were in operations when the inspection was carried out. Access to non-Current Asset Register Auditor should verify that the access to non-current asset register is restricted by the organization and should try to attempt access by using the password of unauthorized individuals. References Europian Commission. (2011). Final Report of Audit carried out in New Zealand. Retrieved on 12 April 2017 from: file:///C:/Users/Akansha%20Sogani_ABSAS/Downloads/2011-6127_FINAL.pdf[1].pdf External Reporting Board. (2013). International Standard on Auditing (New Zealand). Retrieved on 12 April 2017 from: file:///C:/Users/Akansha%20Sogani_ABSAS/Downloads/ISA-NZ-330-Compiled-11-13-Mark-up.pdf