Writing Audit Programs For Tests of Controls: A Practice-Based Pedagogical Approach

Abstract

This paper offers a unique approach to presenting internal control within the classroom, culminating with a lasting framework for writing audit programs for the study and evaluation of internal controls for the external audit. A methodology is suggested to learn and understand internal controls in a visual, interactive environment that enables students to see the control in the flow of the transaction. The approach is structured across two stages: (I) understanding accounting systems and internal controls, and (II) designing audit programs for tests of controls. Stage I incorporates three steps: (1) obtain an understanding, (2) identify cycle key controls, and (3) design tests of controls. Once the students have an understanding of the cycle and controls, Stage II allows students to write audit programs for tests of control using a dual classification of tests – directional and document.