Thank goodness you don’t have to audit every control relevant to your objective, just the KEY controls!
Per GAGAS 2024 8.51… The controls being assessed are generally the key controls identified during the planning phase of the engagement…
The client may have more than a dozen individual controls over an activity. But only a few of them are worthy of your attention.
In other words, imagine a control not functioning or not existing. Does that sound too risky to you? Then that may be one of your key controls.
Remember, under GAGAS you don’t have to look at controls at all! (Notice the word ‘whether’…)
8.39 Auditors should determine and document whether internal control is significant to the audit objectives.
Key Controls definition
8.48 Obtaining an understanding of internal control assists auditors in identifying an audited entity’s key controls relevant to the audit objectives. Identifying key controls involves considering the entity’s objectives that are relevant to the audit and whether the entity has controls in place to achieve those objectives and address associated risks. Collectively, key controls are those controls necessary to achieve the entity’s control objectives and provide reasonable assurance of achieving the entity’s objectives. Key controls often have one or both of the following characteristics:
a. Their failure may significantly affect the achievement of the entity’s objectives, yet not reasonably be detected in a timely manner by other controls.
b. Their operation may prevent or detect other control failures before they have an opportunity to become significant to the achievement of the entity’s objectives.
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