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AP FORM No. 4

Walkthrough TestWork Paper

Name of
Office/Program/Process_________________________________________________________________________

Activity
No. Control Activity Document Examined Procedures Done Audit Notes
FC
Operation
No.

Prepared by: Reviewed by:

___________________________ ________________________
Audit Team Leader IAS HEAD

PERFORMING A WALKTHROUGH

From a control standpoint, a walkthrough is simply the act of tracing a transaction through organizational records
and procedures - that is , how transactions are initiated, authorized, recorded, processed, and reported - a
commonsense approach to learning how a process works.

 It is "cradle to grave" or from “womb to tomb” concept, where the auditor traces a transaction from origination
until it is reflected in the reports.
 Auditors should consider using the walkthrough as an initial means of determining whether policies and
practices have been communicated and implemented.
 Auditors traditionally have relied on walkthroughs as a way of developing an understanding of the
organization's internal controls; critical information that these procedures provide are:
o An understanding of transaction flow and control design, particularly with respect to controls
that may help prevent or detect fraud.
o A determination of whether controls have been designed effectively and actually placed in
operation.
o An identification of points in organizational processes where errors might occur

(Source: findarticles.com/p/articles/mi_m4153/.../ai_n8583697/A fresh look at walkthroughs: U.S.

Public Company Accounting Oversight Board (PCAOB) Auditing Standard No. 2 provides new
perspective on an old audit procedure Internal Auditor, Dec, 2004 by Richard A. Turpen)