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How to understand the test of control?

+4 Votes
How to understand the test of control?

How to understand the test of controls and how its application is done to a scenario-based question? Since I understand the notes and the concepts but I fail to relate it to the scenario based questions. I practically go blank in the questions! Please help...

May 12th 2015 AN ACCA USER 430 Points

3 Replies

+4 Votes

test of control means to test/check the internal controls of an organisation for instance if i want to test the internal control related to purchases i will check number of purchase orders notes to get a feel for the authorised purchases i.e observe the purchase dept manager,s signature on number of purchase order notes.i hope i have cleared you.think practically.

May 16th 2015 AN ACCA USER 690 Points
+2 Votes

Test of control
To understand the TEST OF CONTROLS you must have sufficient knowledge of Internal Controls,use of Internal Controls & evaluation of Internal Controls. In F8 you also have the knowledge of Sales,purchases,inventory,bank & cash, Payroll and Revenue System's cycle. Remember in F8 scenario based question you have to define that what are the objectives of internal controls at each step of given system's cycle, what should be its controls and after all what are the Test of Controls of your suggested controls.
Hope it may be helpful to you. For further concerns about F8 feel free to email me

May 18th 2015 AN ACCA USER 180 Points
0 Votes

test of controls, as evident from the name

it includes the testing of Different organizational internal controls in order to assess the risk of the situation

May 17th 2015 AN ACCA USER 1,610 Points