Business processes, walkthroughs and the IT environment

AUD Chapter 12 · Area II · Blueprint II.C.3

This is the most hands-on part of Area II. The Blueprint has seven tasks on it, rising from application to evaluation: document a process, walk a transaction through it, understand the IT behind it, test the design of controls and conclude whether they work as designed. Simulations often give you a narrative or flowchart and ask you to find the missing control.

In this chapter

Follow the transaction
Revenue and cash receipts: the controls step by step
Purchases, cash payments and payroll: the controls step by step
Inventory, fixed assets, investments and cash: the controls step by step
Three ways to document a process
The walkthrough
Segregation of duties
Types of control you will be asked to identify
The IT environment
Testing design and implementation, then concluding

This chapter has 10 lessons, 50 practice MCQs with explanations and 14 simulations, plus flashcards and a recall sheet.

What this chapter covers

Significant processes and data flows
walkthroughs and flowcharts
ERP and cloud
IT applications
automated and manual controls
design and implementation

Chapter 11: Internal control: COSO, the control environment and IT general controls · Chapter 13: Service organizations, control limits and management override