Field work guidance
1. Start with department policies, procedures and flowchart/ narratives. 2. Make sure you understand the flows of transactions or the protocols as documented in the department policies, procedures and flowchart/ narratives. 3. Select one transaction to perform a process walkthrough. You can use the same sample selected for your (substantive) testing. This walkthrough aims to confirm our understanding of the flows of transaction and to confirm whether the practice is the same as documented in the policies, procedures and flowchart/ narratives. 4. Walkthrough should cover initiation of the transaction, process, authorization and recording (cradle to grave). 5. Evaluate segregation of duties, risks and controls.
6. Document your walkthrough in the walkthrough template. 7. Sign off the workpaper once you complete your walkthrough and documentation.
1. Documentation should include details of transactions tested. Rule of thumb is somebody else can select the same transaction, test the same thing and get the same conclusion. Refer to workpaper template. 2. What if the conclusion is argumentative, i.e. somebody else can get different conclusion from your testing? Then document the rationale why you reach to that conclusion. For example: if the site is small and segregation of duties issues in payroll exists. But then they have management review every month. And you consider it as a good mitigating control. Then you should document the issue, and the fact that mitigating control exist and adequate, so your conclusion is controls are effective. 3. Sign off the workpaper once you complete your testing and documentation.
1. We will only retain evidence of exception in our workpaper. 2. Retain all evidence (with or without exception) for manager to review. Once we release the report, we can dispose all evidence. 3. For certain agreements, we...