Testing of Key Controls as part of 404 Complaince 98

  • I have seen various types of test plans in different engagements. The best plan would really is the one that is customized to 404 Outlines of Key controls that have direct impact on Financial Reporting.
    From Internal Audit stand point:

    1. Ensure that the TEST PLAN is comprehensive and includes key controls
    2. Be sure to provide clarity as who are the buisness owners, key systems, some quanitification of transactions etc
    3. Be generous on Sampling sizes
    4. Use language in such a way that the plan contains questions rathe than statements tryng to verify/ reassurance of a process
    5. Finally make sure Business Process owners understand the key controls that are being included in the test and thye are ready for testing.
      Good Luck
      Madhav Vedula
      Sr.Internal Audit Consultant

Log in to reply