Question

After documenting the client's prescribed internal control, the auditors will often perform a walk-through of each transaction cycle.
An objective of a walk-through is to:A. Verify that the controls have been implemented (placed in operation).B. Replace tests of controls.C. Evaluate the major strengths and weaknesses in the client's internal control.D. Identify weaknesses to be communicated to management in the management letter.

Answer 1

Answer:

A. Verify that the controls have been implemented (placed in operation).

Explanation:

The companies should have a fair policy of internal controls. It should basically have a policy which regulates and monitors all the transactions of each individual. It shall certainly be developed so that the work of one individual is monitored by the other automatically.

When the documentation is done, of such policies and controls by the auditor, he shall satisfy himself by counter checking that the procedures and practices laid are implemented properly.

So that there are no loop holes, and the management shall be held responsible for any procedure documented and not followed practically.