The best sequence of testing is to conduct control testing first and then substantive testing. This approach ensures that the effectiveness of internal controls is evaluated before examining the details of transactions and data. By testing controls first, assurance providers can determine if controls are reliable and can potentially reduce the extent of substantive testing needed. Effective controls can provide confidence that transactions and data are accurate, reducing the need for extensive substantive testing.References:
AICPA Auditing Standards
ISO 19011:2018 - Guidelines for auditing management systems
Questions # 12:
Which one of these is most associated with a "measure of how well we are addressing opportunities"
Performance is most associated with a "measure of how well we are addressing opportunities." Performance management focuses on setting goals, monitoring progress, and evaluating outcomes to ensure that an organization is effectively taking advantage of opportunities to achieve its objectives. It involves measuring and managing activities that lead to improved efficiency, effectiveness, and innovation. By addressing opportunities, organizations can enhance their performance and create value.References:
ISO 9001:2015 - Quality management systems – Requirements
Balanced Scorecard Institute - Performance Management Framework
Questions # 13:
A QUALIFIED assurance opinion or statement is
Options:
A.
An affirmative statement that subject matter conforms to the suitable criteria and is free from meaningful misunderstanding
B.
A statement that the assessment didn’t observe anything that makes us doubt whether subject matter conforms to the suitable criteria and is free from meaningful misunderstanding.
C.
A statement that the assessment encountered some limitations in what can be concluded and outside of those limitations a positive or negative statement can be offered.
A QUALIFIED assurance opinion or statement indicates that the assessment encountered some limitations, and outside of those limitations, a positive or negative statement can be offered. This type of opinion acknowledges that there are constraints that affected the scope or completeness of the assessment, but within the areas that could be reviewed, the assurance provider can still offer a conclusion. It is a way to communicate the assurance provider's findings while being transparent about any limitations that were encountered.References:
IIA Standards for the Professional Practice of Internal Auditing
