In short
A walkthrough follows a transaction from origination through the entity's processes and systems until it is reflected in the financial records, using the same documents and technology the entity uses.
Key takeaways
- It helps the auditor understand the process and confirm that controls are designed and implemented.
- It combines inquiry, observation, inspection and sometimes reperformance.
- On its own it is usually not enough to test whether controls operated effectively over the period.
Where it's tested
AUD: Understanding the Entity & Internal Control — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
To evaluate the design of a control and determine whether it has been implemented, the auditor should: