Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Internal control

Summary of Design Effectiveness Evaluations

The Summary of Design Effectiveness Evaluations under
Internal Control
 summarizes your previous conclusions regarding design effectiveness. This summary can help you assess whether:
  • Client communications regarding design deficiencies are necessary (for nonpublic entities)
  • Design deficiencies indicate identified risks that should be listed in the right-hand pane
  • Your conclusions about design effectiveness should be re-evaluated
  • For a public company audit of internal control, whether you have performed sufficient tests of design effectiveness to address the assessed risk of misstatement to each relevant assertion of each significant account and disclosure.
The summary also contains a link you can click to view the Control Deficiency Evaluation and Aggregation Worksheet.
For a financial statement audit, you can use the
Control Deficiency Evaluation and Aggregation Worksheet
 to accumulate deficiencies and determine whether they represent significant deficiencies or material weaknesses that must be communicated to the client.
For a public company audit of internal control, you can use the
Control Deficiency Evaluation Form and Aggregation Worksheet
 to summarize, accumulate, and evaluate deficiencies to determine whether they (alone or in combination) represent a material weakness or significant deficiency; and to form an overall conclusion on the effectiveness of internal control.
The Summary of Design Effectiveness Evaluations also lets you view the transaction classes for which you plan to test controls. Consider whether those plans are appropriate given design conclusions reached in each area. Generally, it is not effective to test controls over transaction classes that contain design deficiencies.
It also may not be effective to test controls if design deficiencies exist in related transaction classes for a given assertion or in any of the first four COSO components (Control Environment, Risk Assessment, Information and Communication, and Monitoring).
You can print a copy of the Summary of Design Effectiveness Evaluations by clicking the
Print
 button at the bottom of the display area.