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

Under the internal control questionnaire method of evaluating a client's control system, the auditor typically obtains the information by:

The internal control questionnaire method relies on a standard set of questions on each control area that the client answers. The auditor reviews the answers to spot weaknesses and follows them up. Graphical depiction of document movement is the flow chart technique, which is a different method.

  1. ASending a standard set of questions on each area of control to the client, whose answers are then reviewed and followed upCorrect
  2. BDrawing a graphical diagram of the movement of each document through the departments
  3. CRe-performing every transaction of the year to check whether it was correctly recorded
  4. DNarrating the entire system in free-form notes written by the audit assistant after a walk-through

Explanation

The questionnaire method uses a standard set of questions covering each control area, usually answered by the client's staff. The answers highlight strengths and weaknesses, which the auditor follows up. Drawing a graphical diagram describes the flow chart method, not the questionnaire.

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