Examination in depth vs test of controls

I m confused as what's the difference between Examination in depth and test of controls

Rakesh Prabhu

Rakesh Prabhu

CA Final


27-Sep-20 11:58


Answers (1)

Examination in depth is also known as WALKTHROUGH.....means checking the authority and process of a transaction from beginning to end. Example: from the point of raw material requirement, purchase requisition, vendor selection,quotations,placing orders,checking quality of raw material,Issuing GRN,raising Bill's payable and finally payment. TEST OF CONTROLS means type of audit procedures that an auditor performs to check ROMM at assertion level to obtain evidence to choose the amount of substantive procedure to be performed throughout the audit.

Shravan Kumar

Shravan Kumar

CA Inter


27-Sep-20 12:32