Compliance Procedure In Obtaining Audit Evidence

•    Compliance Procedures are tests designed to obtain reasonable assurance that those internal controls on which audit reliance is to be placed are in effect

•    The auditor needs to ensure that internal control exist  and that the internal control is operating effectively and being operating continuously throughout the period under audit to ensure that they can be relied upon.

• In summary, by doing Compliance Tests, the auditor can then able to ascertain the existence, effectiveness and continuity of the internal control system.

Salient Point:

After performing the Compliance Procedures, the auditor shall determine the nature, extent and timing of Substantive procedures to be carried out.