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
record/ review the system
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.