Control activities are those policies and procedures that help ensure that management directives

are carried out

Tests of control - an audit procedure designed to evaluate the operating effectiveness of controls
in preventing, or detecting and correcting, material misstatements at the assertion level. Tests of
control are performed only on those controls that the auditor has determined are suitably
designed – however, the same types of procedures may be used by the auditor, at the same time,
to assess both their design and their effectiveness

CREST: criteria, report, subject matter, three-party relationship

Reasonable assurance engagement: expressed in positive form -> statutory external audti

Limited assurance: negative form -> interim FS

True: Information is factual and conforms with reality. In addition, the information conforms
with required standards and law. The financial statements have been correctly extracted from the
books and records.

Fair: Information is free from discrimination and bias and in compliance with expected
standards and rules. The accounts should reflect the commercial substance of the company's
underlying transactions.

The degree of assurance depend on the nature of the exercise being carried out