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Reasonableness checks Application controls
Controls over Data centre and network General IT controls
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Controls over application system acquisition, General IT controls
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Program change controls General IT controls

QNO Testing Methods in Automated Environment- Old Course --
(SM17/M18M/N18M/M20R/N20E/SM20/SM21)
AAE.35 Bhaskar CNO- AAE.180
Discuss the different ways testing is performed in an automated environment.
OR
Generally, applying inquiry in combination with inspection gives the most effective and efficient audit
evidence. However, which audit test to use, when and in what combination is a matter of professional
judgement. Discuss stating the different ways testing is performed in an automated environment.

OR
What are the different testing methods used when auditing in an automated environment. Which is the
most effective and efficient method of testing?
OR
Explain some of the commonly used methods for testing in an automated environment.
Answer Having learnt about the various IT risks and controls, let
us understand the different ways testing is performed in
an automated environment.
➢ 4 Types of Audit Tests
There are basically four types of audit tests that
should be used. They are inquiry, observation,
inspection and reperformance.

➢ Efficiency Vs Effectiveness

• Inquiry Most Efficient
As shown in the illustration, inquiry is the most
efficient audit test but it is also gives the least
audit evidence. Hence, inquiry should always
be used in combination with any one of the
other audit testing methods. Inquiry alone is
not sufficient.

• Reperformance most Effective
Reperformance is most effective as an audit test and gives the best audit evidence. However,
testing by reperformance could be very time consuming and least efficient most of the time.

• Combination of inquiry & inspection is most efficient and effective
Generally, applying inquiry in combination with inspection gives the most effective and
efficient audit evidence. However, which audit test to use, when and in what combination is a
matter of professional judgement and will vary

• Factors affecting selection
depending on several factors including;
• #first 4 are components of ICS#
o control environment,
o risk assessment,
o nature of control activity
o monitoring of controls
• #Remaining Points are Logical#
o History of errors/ misstatements,
o Complexity of business,
o Desired level of evidence required,

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