ICAEW.com works better with JavaScript enabled.

Continue reading

Understanding, documenting and testing internal controls

Understanding and documenting internal control on audits of financial statements has always been challenging, particularly in smaller entity audits. In this Audit and Assurance Faculty guide we look at some of the continuing issues that challenge auditors and the implications for smaller entity audits.


Dealing with internal controls is an issue in audits of all sizes for a number of reasons. In smaller, less complex audits, one long-standing problem is the extent of the required work on the design and implementation of controls where a fully substantive approach is taken.