You can't really test the design - you can evaluate the design and whether you think it will be effective at preventing or detecting misstatements - hence when you Assess CR, this is what you are doing. When you implement your audit strategy - you use that CR assessment to determine how much testing of operating effectiveness you are going to do. The evaluation of the design is really the Risk Assessment phase
Design tests are related to framework. For example lets say you are testing vendor management. In design test you will check whether the company has a vendor management policy and procedure that details about the particular control. In operating effectiveness test, you check out how much adherence is there to the policy and procedures
This is the most underrated channel which gives a practical guide in the field of auditing and it also guides in different audit exams. I am from India and i am studying for intermediate exam for Chartered Accountant. This really helps Amanda, and Thankyou soo much
Hi Professor Amanda, thank you for your videos. I have few years of Audit experience with one of Australia major retailers (I'm without Big 4 and second tier audit background and limited professional guidance in my early days of audit career) and still find your videos exceptionally helpful. Wished I have seen your videos years ago 🙂 Keep up the great work
You probably will not see but I'm from Türkiye and I wanted to say thank you. Your videos help me a lot to understand auditing concepts so for my final exam☺
hey there! Watching from the US i start auditing in two weeks, just brushing up on my conceptual understanding. Your content is wonderful! Thanks a bunch.
@@amandalovestoaudit iam bala, really interested and your explanation with clarity makes it more interesting. Looking forward to listen to cobti ious class..best regards. Bala (bala69sathya@gmail.com)
Hi Professor Amanda, thank you for your videos, It's really helpful for me to preparing for technical test. It's really insightful because I can learn more beside my study in college. Last year, my test was successful and I got a job in a big 4 company in Indonesia. Keep doing a great work Prof and thankyou so much. God Bless You more!
Hello Amanda! I'm from Kosovo. I'm listening to videos from you Amanda. I'm even more inspired about the start of the CIA I think in 2021. Thank you for advising us on auditing.
Thank you so much for all of your videos on Audit. I absolutely LOVE your teaching style! It really helps everything click for me! Thanks again from Texas : )
Thank you so much Amanda. Awesome Videos. Help me alot understanding of Audit as I do not work as an Auditor. Listening to your videos feels like I could go out to work for an Audit firm :) Love from Perth
A couple of interesting things come to mind when I think of AI being able to facilitate 100% testing. Firstly, I don't believe 100% testing will equate to complete assurance as unrecorded transactions will not be detected, so additional procedures to test completeness will be needed. Secondly, how disruptive would such technology be to the industry as there would be very little firms could do to differentiate themselves in the market?
Hey Shaunak - thanks for your comments - a really great point about how testing 100% of records won’t help us with the completeness assertion 👏👏👍 thanks for sharing your thoughts 🙏
@@amandalovestoaudit Hi Amanda, really enjoy your videos. Regarding AI and those that have Type2reports (Class) and accounting/audit firm conducts internal control risk assessment to limit substantive testing for audit when bank account / shares automatically feed from bank / share registry do you think a very low amount of transactions should still be sampled? Also instances of client using broker / portfolio - custodian services then auditor placing reliance on independent audit report of custodian internal controls.. I guess question is I am ok with test of controls / risk assessment when all these are working but what if they are not, just increase substantive testing from say 10% to 30% for example for each client OR if clients use portfolio/custodian services and there is no independent audit report for that custodian service could TOC and minimal deviation is result, would this be sufficient to reduce substantive testing for all future clients? Hope this makes sense (work example haha)
Hello amanda! I have my ACCA Advanced Audit & Assurance (AAA) exam tomorrow and your videos are really helpful for revision. Keep up the good work Love from Dubai💕
Hi, Doc Amanda, thanks for the usual free Audit Wisdom Nuggets, we continue to consume and enjoy. Lots of Love from Zim and Africa. We remain logged in for the next episode and by the way keep that Hair-Stylist of yours well looked after, you never disappoint or shortchange us with the lovely matching hairstyle colours.......CHEERS DOC......Tatenda (We thank You)
@@amandalovestoaudit Maaaa'am😂😂 You still remembered the name...hahaha😂😂, that the strongest one, I believe you were with those nice kids of yours to carry you back to yr hotel room😂😂😂
Thank you Amanda… I’m falling in love with this already…just remembered all what we did in school…but I’d love to know how to do these restrings practically. I really would love to know what Internal Audit managers do. Ademola from Chris Ejik Pharamaceuticals Nigeria.
A question- Highly material transactions involve Significant Amont of money or risk which can impact the financial statements.So why it's part of not to test for internal control? Please can you help to understand
Why would we be asked to provide a guarantee? When we know there is always the risk of judgements as well, As Provisions are estimations, they can't be 100% right, so we can not provide absolute assurance.
The expectations gap! People don't always understand - but with big data analytics, there is the possibility in the future of testing controls over every single transaction (which is a bit scary!)
Hey Amanda. Love your videos and they are abosolutely helpful in performing IC testing. However I just wanted to check if you have made any video on Scoping of Sox/ IC and if you can share the link of the same
@@amandalovestoaudit I am a Security / Compliance person and I dont believe in replacing auditors.. I just want to help Automate the evidence gathering.. I am a Redhat/Ansible enthusiast and see opportunities in IAC Infrastructure as code, CAC Compliance as Code
What is the difference between test of design and implementation and test of operating effectiveness? Are both part of test of controls?
You can't really test the design - you can evaluate the design and whether you think it will be effective at preventing or detecting misstatements - hence when you Assess CR, this is what you are doing. When you implement your audit strategy - you use that CR assessment to determine how much testing of operating effectiveness you are going to do. The evaluation of the design is really the Risk Assessment phase
@@amandalovestoaudit Thank you so much for sharing knowledge in a such practical fashion!
Design tests are related to framework. For example lets say you are testing vendor management. In design test you will check whether the company has a vendor management policy and procedure that details about the particular control.
In operating effectiveness test, you check out how much adherence is there to the policy and procedures
5:20 5:19
This is the most underrated channel which gives a practical guide in the field of auditing and it also guides in different audit exams. I am from India and i am studying for intermediate exam for Chartered Accountant. This really helps Amanda, and Thankyou soo much
Hi Professor Amanda, thank you for your videos. I have few years of Audit experience with one of Australia major retailers (I'm without Big 4 and second tier audit background and limited professional guidance in my early days of audit career) and still find your videos exceptionally helpful. Wished I have seen your videos years ago 🙂 Keep up the great work
I am preparing for my final Board exam and so glad to have found your channel. Thanks for the great content. Love from South Africa
Good luck in your exam Dineo! Please do drop by and let us know how you went (or contact me via FB or Instagram)
You probably will not see but I'm from Türkiye and I wanted to say thank you. Your videos help me a lot to understand auditing concepts so for my final exam☺
Very well explained Amanda Ma'am, respect from India 🇮🇳
Greeting from Somalia 🇸🇴, happy to be your student.
Thanks Mohamed 😊
I love your videos simplifies the audit language thank you so much, from South Africa ❤️
You're so welcome Leshi!
Hi watching from Malawi. S/O to Amanda loves to audit. #learning
Hy mem ,
You teach in an easy and simply way we didnt get any difficulty to understand .
Thank you :)
You are so welcome!
:)@@amandalovestoaudit
appreciate the videos! Cheers from Bangladesh!
From Sri lanka!
You're doing such a great service! 😇
Whenever I seek for insight / doubt of audit steps I just go and check your playlist 😊
Thank you Siddeeq for such confidence in me 🙏🙏
thanks for this Dr. Amanda! I’ll be taking up my exam next month!
yeah, im claiming and manifesting that ill surely pass my exam bcs of your videos! ❤
Great explanation of testing internal controls! I like your enthusiasm and the presentation is engaging.
Greetings from Finland! Thank you dear Amanda for your amazing channel ❤️ Love it!
Thank you Katja! 🙏😊
Thank you for making these videos and find them very useful in understanding audit processes.
You are so welcome!
Thank you Amanda, your videos were so helpful.
Love from Nigeria 🇳🇬
Thanks Amanda. I m from Cameroon.
Your videos are rewarding.
Am from Sierra Leone and I like your explanation thanks so much.
Glad it was helpful!
Thank for this channel. I am preparing to become an effective internal auditor
I appreciate what you do Amanda. You are amazing. Greetings from Turkey!
Thank you!
hey there! Watching from the US i start auditing in two weeks, just brushing up on my conceptual understanding. Your content is wonderful! Thanks a bunch.
You've actually help me understand and potentially loving audit 🙂 thank you very much Amanda 💙
I'm so glad to hear this Naj!
@@amandalovestoaudit iam bala, really interested and your explanation with clarity makes it more interesting. Looking forward to listen to cobti ious class..best regards. Bala (bala69sathya@gmail.com)
Hi Professor Amanda, thank you for your videos, It's really helpful for me to preparing for technical test. It's really insightful because I can learn more beside my study in college. Last year, my test was successful and I got a job in a big 4 company in Indonesia. Keep doing a great work Prof and thankyou so much. God Bless You more!
Thank you for this video! You are wonderful, Amanda!
Thank you from Malaysia! Learn a lot from your videos!
You’re very welcome Linda!
Great video! By this I was able to understand DR clearly. Thanks
Excellent to hear - thanks for watching ☺️
Your videos hold SOOOO much value. Thank you for your kind work I am grateful!
You’re very welcome ☺️
Hi Prof. Amanda. Thank you very much for your contribution. I'm from Brazil.
Hello Amanda! I'm from Kosovo. I'm listening to videos from you Amanda. I'm even more inspired about the start of the CIA I think in 2021. Thank you for advising us on auditing.
Hi kujtim!
Thank you for watching Kujtim!
@@arberhoti hello 👋🏼
Amanda, your podcasts are amazing and helpful! Thanks a lot!!! :)
Thank you so much Inna! Good luck in your studies!
Hi, Amanda, I'm so excited to listen to one of your lecture series today. My name is Zachariah from Liberia
Hello I am from the Philippines! I love your videos. I am always learning 🤗
Awesome! Thank you!
thanks so much for your videos, such a huge help. I am from Tanzania
Thanks so much Amanda, from Bandung - Indonesia
Hello Amanda, I'm from Brazil. This video was fantastic! Thanks a lot!
Hey Prof! Great to see you on here - much love to everyone in Brazil and South America 😊
Enjoying your works. Basil.
Thanks Basil 😊
Thank you so much for all of your videos on Audit. I absolutely LOVE your teaching style! It really helps everything click for me! Thanks again from Texas : )
Hi Amanda, I am from Colombian I am starting study for take my CPA test... thank you.
These are a real masterclass
Good evening Mrs. Amanda from Cyprus. You are amazing. 💜
Hi Efrosini! Cyprus - wow - thanks for learning with us ☺️
Great video... Superb explanations and execution of concepts
Greetings from Guyana, love your vids.
Thank you so much Amanda. Awesome Videos. Help me alot understanding of Audit as I do not work as an Auditor. Listening to your videos feels like I could go out to work for an Audit firm :) Love from Perth
Go for it! A career in audit is so rewarding :)
Hi Amanada - Add Fida from Lebanon - I'm happy to know you - you teach with passion - I'm from both, the practice and the teaching fields
Hello Amanda I'm from Uganda thank you for this great work I really appreciate
Your my CPA audit tutor
You’re very welcome Katende ☺️
A couple of interesting things come to mind when I think of AI being able to facilitate 100% testing. Firstly, I don't believe 100% testing will equate to complete assurance as unrecorded transactions will not be detected, so additional procedures to test completeness will be needed. Secondly, how disruptive would such technology be to the industry as there would be very little firms could do to differentiate themselves in the market?
Hey Shaunak - thanks for your comments - a really great point about how testing 100% of records won’t help us with the completeness assertion 👏👏👍 thanks for sharing your thoughts 🙏
@@amandalovestoaudit Hi Amanda, really enjoy your videos. Regarding AI and those that have Type2reports (Class) and accounting/audit firm conducts internal control risk assessment to limit substantive testing for audit when bank account / shares automatically feed from bank / share registry do you think a very low amount of transactions should still be sampled?
Also instances of client using broker / portfolio - custodian services then auditor placing reliance on independent audit report of custodian internal controls.. I guess question is I am ok with test of controls / risk assessment when all these are working but what if they are not, just increase substantive testing from say 10% to 30% for example for each client OR if clients use portfolio/custodian services and there is no independent audit report for that custodian service could TOC and minimal deviation is result, would this be sufficient to reduce substantive testing for all future clients? Hope this makes sense (work example haha)
Watching from Papua New Guinea. I learnt a lot about auditing from you.
Thank you
Thank you!
Hello amanda! I have my ACCA Advanced Audit & Assurance (AAA) exam tomorrow and your videos are really helpful for revision. Keep up the good work
Love from Dubai💕
I hope you did well Amna!
Thank you for your Video clips, I am a Tanzanian
Very well explained Amanda !! Thanks for making such informative videos.
You're very welcome Anupam 😊
Hi, Doc Amanda, thanks for the usual free Audit Wisdom Nuggets, we continue to consume and enjoy. Lots of Love from Zim and Africa. We remain logged in for the next episode and by the way keep that Hair-Stylist of yours well looked after, you never disappoint or shortchange us with the lovely matching hairstyle colours.......CHEERS DOC......Tatenda (We thank You)
Always great to hear from you Bvumayi - thank you so much for your kind words 😊
Love from India
Great content mam
Thank you!
Hi Amanda, am trying to understand the diffeence between Internal controls and substantive tests,
I like your explanations,
Same here,,, hope you figured it out well
Hi Amanda, i love your videos, they are so useful! Hope you could upload more 😊😊
Thank you Amanda from Malawi
Hello Amanda, thanks for video I really enjoyed it ♥️💯
Hello! Amanda,i am From Bangladesh,your Video is very helpful to us.
Been Studying Audit and hated it - until i found your videos - plain English lectures
Glad to hear I can make auditing more enjoyable!
Very clear! Thank you
You're welcome!
Good work done by u for young generation
Thanks 🙏 prof, from Timor Leste
Hi Amanda you are an amazing lecture i learned so many things from you
Propitas M. Lituanas from the Philippines
This's really helpful doc. Victor from Tanzania.
Jambo Victor! I visited Tanzania many years ago (maybe 12?) - beautiful country and people ☺️
@@amandalovestoaudit haha😂
Jambo doc! Karibu Tena Tanzania.
I have many memories of drinking Konyagi 😂😂😂
@@amandalovestoaudit Maaaa'am😂😂 You still remembered the name...hahaha😂😂, that the strongest one, I believe you were with those nice kids of yours to carry you back to yr hotel room😂😂😂
Karibu Tena Tanzania = welcome again Tanzania
Greetings from Malawi, the warm heart of africa
Greetings Bester! Thank you for learning with us ☺️
thank you for this video!
watching from Madagascar
Professor, could you please do a series on findings and recommendations? Thanks!
A huge fan of you from Afghanistan
zimbabwe , thank you for these vidz....they are really helpful
That is excellent to hear ☺️
Love the Audit. From Somalia.
Thank you Muktar 🙏😊
Thank you Amanda… I’m falling in love with this already…just remembered all what we did in school…but I’d love to know how to do these restrings practically. I really would love to know what Internal Audit managers do. Ademola from Chris Ejik Pharamaceuticals Nigeria.
Hello Amanda, My name is Mi from Laos, your video is very helpful ❤️
Hi Mi - hope you're well in Laos - stay safe 😊
I am a Liberian
A question- Highly material transactions involve Significant Amont of money or risk which can impact the financial statements.So why it's part of not to test for internal control? Please can you help to understand
wow!! much Wow!! great video !!
Hi! Greetings from Malaysia. My friend is Amanda too >_< Your video really helps me a lot. I love it
Happy to help!
Thank you from Japan!
You're so very welcome! 😁
Where we're looking at something qualitative, for example, corporate governance, or culture - how do you test that?
Why would we be asked to provide a guarantee? When we know there is always the risk of judgements as well, As Provisions are estimations, they can't be 100% right, so we can not provide absolute assurance.
The expectations gap! People don't always understand - but with big data analytics, there is the possibility in the future of testing controls over every single transaction (which is a bit scary!)
Hey Amanda. Love your videos and they are abosolutely helpful in performing IC testing. However I just wanted to check if you have made any video on Scoping of Sox/ IC and if you can share the link of the same
Respect and appreciation from Pakistan
Thank you Rana! ❤️
Hi I'm from England, UK. Been watching you for years, started when studying for my CIA.
Hey S.P! Thank you so much for watching from England!
Hi, have you given cia part 1 ?
@@palakshah1492 hi, yes but it was the old syllabus. My advice is learn the standards.
Thank you 😁
Love from Tanzania
Do auditors really do tests of controls during the final audit? Are tests of controls done more commonly during the interim audit?
Hello Amanta
This Kannan from India, can you post video for test of design(TOD)and test of effectiveness (TOD)
❤️ from India.
Thank you Anoop 😊🙏
Thanks from Benin City Nigerian
You are super cool.. very helpful 🙌🙏🙏
Thank you!
Love yyyyyyyyyyyyy Amanda from Algeriaaaaaa ❤❤❤❤
I'm just starting looking at your videos and wondering do your videos apply to IT Audits as well?
Amanda can you talk about cybersecurity audit & sox audit
I really appreciate what you do, can you help us (who are entry level of this field of internal auditing)
From Haiti 🇭🇹
Hi Eddy - thanks for watching!
HUGE FAN. Love your lectures. They help me in my audit career
Is one design of test enough? because, what if the meters we have selected are not efficient of detecting the inefficiency in our 1st test design ?
From Jamaica 🇯🇲
Thanks
You’re welcome ☺️
Watching you from Flint MI - Interested in Automation of Evidence collection :)
Hey Leon! This is such a rapidly growing area - RPA seems to be getting a lot of focus
@@amandalovestoaudit I am a Security / Compliance person and I dont believe in replacing auditors.. I just want to help Automate the evidence gathering.. I am a Redhat/Ansible enthusiast and see opportunities in IAC Infrastructure as code, CAC Compliance as Code
@@amandalovestoaudit looking for solid standing for evidence
Hi! Greetings from Guatemala
Hey Karlos - thanks for watching! This might be my first ever comment from Guatemala!
👏🏻👏🏻👏🏻 clap clap i understand everything about testing internal controls how about SOX?? Its about the same? Cheers from Mexico
SOX testing is generally the same process, but you have to identify & report on material weaknesses in the internal controls