Difference between Concurrent tests of control and Planned test of control

Difference between Concurrent tests of control and Planned test of control

Difference between Concurrent tests of control and Planned test of control

The procedure to test the effectiveness of controls in support of a reduced assessed control risk is called tests of controls. Concurrent testing is a software testing activity that determines the stability of a system or application under test during normal activity. The planned test of control is performed during the field work and should provide evidence of the proper and consistent application of a control policy of procedure throughout the entire year under audit.

Concurrent test of control

  • Definition: a Concurrent test of control consists of procedures for obtaining an understanding that also provides evidence about the effectiveness of a control policy or procedure.
  • Performed: These tests are performed at the option of the auditor under either audit strategy.
  • Cost: Concurrent tests of controls are usually very cost efficient and they reduce the extent of an additional test of controls to be performed later in the audit.
  • Support: Evidence from concurrent tests of controls will support an assessed level of control risk in the ranges slightly below maximum to high.
  • Example: The auditors may make inquiries about the existence of a budgetary system in obtaining an understanding.

Planned test of control

  • Definition: a Planned test of control is performed during the field work and should provide evidence of the proper and consistent application of a control policy of procedure throughout the entire year under audit.
  • Performed: They are not ordinarily performed nada the primarily substantive approach.
  • Cost: This test is also known as additional tests of control not very costly.
  • Support: Planned tests of controls are performed to support the initial planned assessed level of control risk moderate or low and the corresponding planned level of substantive tests.
  • Example: They are performed when it is likely that additional evidence will be obtained to lower the initial assessment of control risk.

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