Factsheet - Internal Audit Testing

Factsheet

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Author

IIA-Australia

Date

2023

Topics Explored

Internal Audit, Internal Audit Management

Format

Factsheet

Extract/Description

As internal auditors we are expected to make assessments about processes. Usually, our audit clients are interested in knowing whether they can rely on a particular process. While our clients might be interested in the errors we find, they are usually much more interested in our view of overall performance. Control testing vs outcome testing.

Key Points

There are two major streams of enquiry to form this conclusion:
- Examining the design and operation of the process (Control Testing)
- Examining the outcome of the process (Outcome Testing)
Both the testing approaches are valid and are both valuable in the internal audit process.

Relevant Industries

All

Level of Assumed Knowledge

Intermediate

Aligned to Global Internal Audit Standards

No