Procedure Step:Assessing Internal Controls

Audit Step:

1. Determine the degree of compliance testing that will be needed during the audit based on the assessment of the elements of COSO and FISCAM. 

2. Document your assessment of each area of COSO.

3. Perform the tests on controls, as necessary.

4. If there are reportable conditions regarding any of the COSO elements, prepare a Summary of Findings and Preliminary Audit Findings.

Purpose:

To reach a conclusion regarding the adequacy of internal controls.