Key Control Effectiveness Testing

This is where all the hard work gets put to the test – literally.  Key Controls for all processes have been defined and implemented.  The auditors, both internal and external, now apply the Test Plans and Audit Programs to test the operating effectiveness of the controls.  Evidence to demonstrate that controls operated for a selected sample of occurrences is obtained by the auditor and subjected to specified audit procedures with only “pass” or “fail” results.  The results from the sample are used to conclude whether the control consistently operates as designed (that is, whether the control is ‘operating effectively’).

If a Key Control fails Effectiveness Testing, all is not lost.  The problem that caused the failure can be remediated (see the next phase of our Methodology), and the test can be repeated.  HOWEVER, the test can only be repeated if the problem is corrected early enough in the year.  If Effectiveness Testing is not completed until late in the year, there may be no time to accumulate a large enough population under the ‘corrected’ process for a new round of testing.  This is the MOST CRITICAL reason to begin your Sox project as soon as possible.

The Precipio Group can perform Effectiveness Testing for you, or we can manage and assist your internal resources as they complete the testing.