Internal Controls: Are You Actually Testing Operating Effectiveness?

In the years leading up to the mid-1980s, auditors of smaller sized non-public entities performed their audits rather differently from what is being done in the 21st century. The auditing approach in the 80’s often consisted of the auditor obtaining the general ledger from the client and transferring the balances to a trial balance; it was from the trial balance that numerous schedules such as various expense accounts along with balance sheets were prepared. The auditor then vouched transactions to