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CMA Intermediate · Corporate Accounting and Auditing · Audit Risk, Internal Control, Internal Check and Internal Audit

Considering SA 315, why can the auditor NOT assume that a manual control will be applied consistently?

The auditor cannot assume consistent application of manual controls because they are more easily bypassed, ignored or overridden and are more prone to simple errors and mistakes than automated controls. This makes them less reliable, as stated in SA 315.

  1. AManual controls are always designed poorly
  2. BManual controls can be more easily bypassed, ignored or overridden and are more prone to simple errors and mistakesCorrect
  3. CManual controls are never relevant to the audit
  4. DManual controls apply only to small entities

Explanation

SA 315 says manual elements may be less reliable than automated ones because they can be more easily bypassed, ignored or overridden and are more prone to simple errors. Hence consistency of application cannot be assumed. The claim that they are always poorly designed is not what the standard says.

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