Question
What is the auditor looking for in a procure-to-pay walkthrough?
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Answer
How one transaction moves through the process and controls.
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Question
Why is a single clerk handling vendor setup, invoice approval, and payment a problem?
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Answer
It violates segregation of duties and creates fraud risk.
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Question
How does the auditor decide whether to test operating effectiveness of a control?
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Answer
Only if the control will be relied on or substantive evidence is insufficient.
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Question
Why are application controls dependent on ITGCs?
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Answer
ITGCs underpin consistent processing of automated controls.
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