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I HAVE A QUESTION REGARDING F8 'WALK-THROUGH TESTS'.

+1 Vote
I HAVE A QUESTION REGARDING F8 'WALK-THROUGH TESTS'.

At what stage does an auditor perform walk-through tests?
These are the 4 stages.
1) select and perform test of controls
2) record/review the system
3) evaluate systems control
4) Ascertain/understand the system

May 11th 2015 AN ACCA USER 290 Points

3 Replies

+1 Vote

record/ review the system

May 11th 2015 AN ACCA USER 160 Points
0 Votes
Why can't it be 'understand the system'?
May 15th 2015 AN ACCA USER 290 Points
0 Votes

A walk-through test is a procedure under financial audit performed by auditors.

The purpose of walk-through tests is for the auditors to establish the reliability of a client's accounting and internal control procedures, Walk-through tests can not be considered tests of controls.

Your firm's accounting system can't do its job if employees don't do the paperwork properly. An audit walk-through traces how your company authorizes, records, processes and reports a sample transaction to confirm that it's handled correctly. The walk-through starts with the initial transaction and tracks every step in your financial-reporting system until the transaction shows up in the cash-flow statement and other key financial documents.

So it is appropriate that i most probably done at stage 2.

May 15th 2015 AN ACCA USER 140 Points
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