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Internal control

Add a Test Procedure

When working on a Control Activities Form, you can add a new test procedure to a control.
note
You access the Control Activities Form from links on the Financial Close and Reporting and General Computer Controls location forms, which are found under Control Activities on the
Navigation
 pane.
To add a test procedure:
  1. Click the
    View Control Activities Form
     link.
  2. Expand the objective and right-click to select a control. Then click
    Test Procedure Options
     on the shortcut menu.
    The
    Test Procedure Options
     window appears with a list of all test procedures related to the selected control.
  3. Click the
    Add
     button.
    The
    Add Test Procedure
     window appears.
  4. Complete the information by describing the test procedure and selecting the related controls.
  5. In the
    Select the Related Controls
     scroll box, click the
    +
     symbols to drill down to the controls level.
  6. Select the applicable check boxes to indicate your choices.
  7. Click
    OK
     to add the test procedure.
Other options on the
Test Procedure Options
 window include
Reassign
 and
Delete
.
To reassign test procedures:
  1. On the
    Test Procedure Options
     window, select a control.
  2. Click the
    Reassign
     button to assign an existing test procedure to the currently selected control.
    The
    Reassign Test Procedure(s)
     window appears with all system-generated test procedures listed.
  3. Select the check boxes associated with the test procedures you want to assign to the control. You also can clear check boxes associated with test procedures that you want to remove from the control.
  4. Click
    OK
     to reassign the test procedure.
To delete test procedures:
You can delete only test procedures that you added to the control using the
Add
 button.
  1. On the
    Test Procedure Options
     window, select a test procedure.
  2. Click the
    Delete
     button.
    The
    Reassign Test Procedure(s)
     window appears with all system-generated test procedures listed.
  3. Select the check boxes associated with the test procedures you want to assign to the control. You also can clear check boxes associated with test procedures that you want to remove from the control.
  4. Click
    OK
     to reassign the test procedure.
note
You cannot delete a test procedure generated by SMART Practice Aids. To remove a system-generated test procedure, click the
Reassign
 button and clear the applicable check box.

Public Company Audit

When performing a public company audit of internal control, in order to form a conclusion about the effectiveness of the company’s internal control, you must perform sufficient tests of controls to address the assessed risk of misstatement to each relevant assertion of each significant account and disclosure.
In addition, when performing a public company integrated audit of internal control and the financial statements, you should test controls to simultaneously accomplish the objectives of both audits. In performing the audit of internal control, your opinion relates to the effectiveness of the company's internal control as of a point in time, and you should obtain evidence that internal control has operated effectively for a sufficient period of time, which may be less than the entire financial statement period (ordinarily a year). To assess control risk for specific assertions at less than the maximum for the financial statement audit, however, you are required to obtain evidence that the relevant controls operated effectively during the entire period upon which you plan to place reliance on those controls.