List of contents

Examination or Inspection of Evidence
This testing method helps auditors determine whether manual controls are being consistently performed and properly documented. Inspection can be used to verify the implementation of control measures, and to test certain attributes of policies and procedures.
For example, an auditor may check to make sure that backups are scheduled to run on a regular basis or that data classification controls. In these cases, the auditor can use inspection to verify that the control has been designed and is operating effectively. He or she will check to see if forms are being filled out correctly. Examination of evidence also includes the review of written documentation and records that might include visitor logs, employee manuals and system databases.

Re-performance
Re-performance is used when inquiry, observation, and physical examination and inspection have failed to provide the requisite assurance that a control is operating effectively. It’s also the method that is used least frequently in the field. Re-performance requires the auditor to manually execute the control in question, such as re-performing a calculation that is usually automated. The auditor can leverage work done by an internal auditor and documented in work papers, so that only a sample of the work needs to be re-tested to verify.
The re-performance method is helpful in decreasing the workload for auditors and determining whether automated controls are operating effectively. It is the strongest type of testing to highlight the operating effectiveness of a control.
Computer-Assisted Audit Technique (CAAT)
The CAAT method of testing is often used to analyze large volumes of data or a sample of compiled data. Using special software, CAAT testing runs a script over a ledger, spreadsheet, or an entire database, to spot trends, irregularities, and potentially fraudulent entries.
“I.S. Partners doesn’t use CAAT methods very often. The automated process can be helpful when we need to weed through big numbers and a large of data. The computer-aided testing helps us focus in on areas where there are statistical irregularities, but from that point forward, the testing needs to be done by a skilled auditor to meet due diligence,” explains Joe.