The correct answers are: Establish whether the controls are operating as they are expected to be; Establish whether the documentation relating to controls fairly reflects the operation of the system; Establish whether improvements need to be made to controls; Form an opinion as to the adequacy of the system as a whole for managing the risks identified.

The objectives of tests of controls are similar for internal and external auditors. The purposes for internal auditors include determining whether the controls are operating as they are expected to be, whether the documentation is adequate, whether improvements need to be made, and to form an opinion as to the adequacy of the system as a whole. The identification of persons whose performance is not acceptable may be a by-product of this process, but it is not normally a primary objective.