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Types of Control Testing

The document outlines two types of control testing: compliance testing and substantive testing. Compliance testing validates adherence to standards by checking for the presence of controls, while substantive testing verifies the accuracy and integrity of claims made during compliance testing, often used in financial auditing. Compliance testing is typically the first step in the audit process, whereas substantive testing provides a more rigorous examination of details.

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57 views2 pages

Types of Control Testing

The document outlines two types of control testing: compliance testing and substantive testing. Compliance testing validates adherence to standards by checking for the presence of controls, while substantive testing verifies the accuracy and integrity of claims made during compliance testing, often used in financial auditing. Compliance testing is typically the first step in the audit process, whereas substantive testing provides a more rigorous examination of details.

Uploaded by

akparida09_850881076
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Types of Control Testing

3 February 2024|CISA
Compliance Testing:

 Purpose: To validate if a process adheres to the


requirements of a specific standard or policy.
 Verification: Focuses on the existence or non-existence of
controls.
 Attribute: Relies on an "exist or not exist" attribute.
 Example: Verifying if antivirus is installed on all systems as
required.
 Sequence: Often conducted first in the audit process to
limit the scope.
 Outcome: Pass or fail based on whether controls are in
place as specified.

Substantive Testing:

 Purpose: To verify the substance and integrity of claims


made during compliance testing.
 Verification: Involves checking the actual substance,
accuracy, and completeness of the claim.
 Attribute: More rigorous and involves detailed examination.
 Example: Evaluating the number of systems with and
without antivirus after a compliance test.
 Use Cases: Commonly used in financial auditing, counting,
analytics, testing of balances, and transactions.
 Degree of Use: More extensive use in financial auditing
compared to compliance testing.

Key Points:

 Compliance testing checks for adherence to specified


requirements, often focusing on the presence or absence of
controls. It's an initial step in the audit process to assess the
overall control environment.
 Substantive testing delves deeper into the details,
examining the substance and accuracy of claims made
during compliance testing. It is more rigorous and is
especially important in financial auditing, where detailed
verification is crucial.
 While compliance testing may be an easier starting point,
substantive testing is often more critical, particularly in
financial auditing, where detailed examination is essential
for ensuring accuracy and reliability.

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