Mark Company's audit team is evaluating the controls that Markhas implemented over the automated...

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Accounting

Mark Company's audit team is evaluating the controls that Markhas implemented over the automated processing of payrolltransactions. During the understanding and assessment stages of theaudit, the following processing and output controls have beenidentified as being important in this processing:
Control totals are determined prior to the input of dataand compared to computer-generated totals following transactionprocessing.
Consider the four methods of testing the operating effectivenessof controls (inquiry, observation, document examination, andre-performance). For this controls, provide an example of howMark's audit team might choose to test the operating effectivenessof the control using the four methods of test of controls (e.g.,how would the audit team use inquiry, observation, documentexamination, and re-performance to test control #1, the generationand review of the system log?). [Note: Not all types of tests ofcontrols will be appropriate for testing all the controls.]

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Auditing is a process which involves official inception of an organizations accountswhich is done by an independant bodyThere are five different main methods to audits which are used by auditors to audit the organizationWith the help of these methods an auditor can can come to the conclusion of its audit results In case of Mark Company Auditors are require to evaluate the controls that Mark has implemented over the automated processing of payroll transactions Step wise Auditng of Mark companys Automated Payroll Transactions 1InquiryFirst of all the auditors should inquire and confirm that the pay See Answer

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In: AccountingMark Company's audit team is evaluating the controls that Markhas implemented over the automated processing...Mark Company's audit team is evaluating the controls that Markhas implemented over the automated processing of payrolltransactions. During the understanding and assessment stages of theaudit, the following processing and output controls have beenidentified as being important in this processing:Control totals are determined prior to the input of dataand compared to computer-generated totals following transactionprocessing.Consider the four methods of testing the operating effectivenessof controls (inquiry, observation, document examination, andre-performance). For this controls, provide an example of howMark's audit team might choose to test the operating effectivenessof the control using the four methods of test of controls (e.g.,how would the audit team use inquiry, observation, documentexamination, and re-performance to test control #1, the generationand review of the system log?). [Note: Not all types of tests ofcontrols will be appropriate for testing all the controls.]