(c) Additional audit procedures
– The auditor could expand the amount of test of controls in that audit area. This may indicate that the control weakness was not as bad as initially thought.
– The problem could be raised with the directors, either verbally or in a management letter, to ensure that they are aware of the problem.
– The auditor could perform additional substantive procedures on the audit area. This action will help to quantify the extent of the error and makes the implicit assumption that the control system is not operating correctly.
– If the matter is not resolved, then the auditor will also need to consider a qualification in the audit report; the exact wording depending on the materiality of the errors found.
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