Depth Test

• Sometimes also known as “cradle-to-grave” tests
• Its involves taking a transaction or a number of transactions and following them through the accounting system from start to finish or vice versa

Purposes/Objectives

• Generally, depth test is to provide audit evidence to assist the auditor in arriving at his opinion
• There are also some specific purposes of using depth test:
• To confirm the accuracy of his client’s accounting system. Also refer to as “walk-through checks” Such a depth test is likely to involve only a small number of transactions

• To perform compliance test. The auditor may use a number of transactions, testing the control in depth at each stage. Such tests will provide him with evidence as to whether or not he may rely upon that control in planning later audit work

•  To provide evidence of a substantive nature. He may use such principles to check that transactions have been properly recorded in the accounting records or in the financial statements.