Jessica Chatman Is a Staff Auditor Assigned the Task of Performing

Essay

Jessica Chatman is a staff auditor assigned the task of performing tests of internal controls for the JC Automotive Parts engagement. Before she begins testing, Jessica
must first determine the timing of her tests. Because JC Automotive is a very small
engagement, all controls are manual. In planning the tests, she identifies one control
as a significantly recurring control over the revenue account that occurs once a week
(52 times a year). For another area, she identifies a control that is over adjusting
entries and occurs quarterly (four times a year).
In planning the timing of the tests of the internal controls over financial reporting,
which should Jessica plan to test more frequently? Would your answer change if
the controls over the revenue account were automatic controls that did not change
over the reporting period? Explain.