[Anonymous]

In the Ninja Notes, for the internal controls section, it states, “controls tested by auditor in a prior year can be used in the current year’s audit assuming they are re-tested every third year. Exception: if the control has changed since the last audit.”

I just have 2 questions. First of all, what is the reason behind it being tested every 3 years (why not more frequent or less frequent)? And secondly, if the control has changed since the last audit, what happens then? (i.e. should you use the controls tested by auditor in prior year more frequently, less frequently, or not at all)

[Anonymous]

Why did they choose 3 years? I don't know

If the controls have changed, then you must perform test of controls if you want to rely on the controls. You cannot rely on previous tests of controls at all.

Also, even if the controls have not changed, you still have to verify that. You can't just take their word for them

[Anonymous]

Cool beans, thanks 🙂

[Author]

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