Recruiter's Glossary

Examples: Sampling • Qualified Opinion • Internal Controls

Test of Controls

Term from Auditing industry explained for recruiters

A Test of Controls is a key process in auditing where professionals check if a company's internal rules and safeguards are working properly. Think of it like testing the locks and alarm system of a house - auditors verify that the company's protective measures actually do their job. These tests help ensure that financial records are accurate and that company assets are protected from errors or misuse. You might also see this referred to as 'controls testing', 'internal controls testing', or 'control testing procedures' in job descriptions.

Examples in Resumes

Performed Test of Controls for Fortune 500 client's financial reporting processes

Led team of 5 auditors in conducting Tests of Control for major banking institution

Developed and executed Test of Controls procedures for payroll and accounts payable systems

Typical job title: "Auditors"

Also try searching for:

Internal Auditor External Auditor IT Auditor Compliance Auditor Risk Assurance Associate Controls Specialist Audit Associate

Where to Find Auditors

Professional Organizations

Online Communities

Job Boards

Example Interview Questions

Senior Level Questions

Q: How would you design a Test of Controls program for a company that's recently switched to remote work?

Expected Answer: A senior auditor should discuss assessing new risks from remote work, adapting existing control tests, implementing digital verification methods, and ensuring documentation standards are maintained while working remotely.

Q: How do you determine the sample size for Tests of Controls?

Expected Answer: Should explain how they consider factors like risk level, population size, and required confidence level, and be able to discuss different sampling methods in simple terms.

Mid Level Questions

Q: What do you do if you find a control isn't working as intended?

Expected Answer: Should explain the process of documenting the issue, evaluating its impact, communicating with management, and developing recommendations for improvement.

Q: How do you document your Test of Controls work?

Expected Answer: Should discuss creating clear audit trails, maintaining proper evidence, writing detailed explanations of procedures performed, and organizing findings in a way that others can understand.

Junior Level Questions

Q: What is the difference between a Test of Controls and substantive testing?

Expected Answer: Should explain that Tests of Controls check if processes are working correctly, while substantive testing looks at the actual numbers and transactions.

Q: What are the basic steps in performing a Test of Controls?

Expected Answer: Should be able to outline the basic process: understanding the control, planning the test, selecting samples, performing the test, and documenting results.