All 18 Internal Controls Evaluation questions
More in Internal Controls Evaluation
What is the difference between preventive and detective controls? How does the auditor obtain an understanding of internal control? What is the difference between design effectiveness and operating effectiveness? What are entity-level controls versus process-level (transaction) controls? When does the auditor decide to test controls versus take a fully substantive approach? How do you document the understanding of internal controls? What are compensating controls and how do they affect the audit? What is the difference between a deficiency, a significant deficiency, and a material weakness? What are IT general controls (ITGCs) and why do they matter? How does management override of controls create risk, and how do auditors address it?
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Auditing & Assurance › Internal Controls Evaluation

What is the difference between manual and automated controls?

Intermediate

Answer

Manual controls are performed by people (e.g., a manager reviewing a reconciliation) and are flexible but prone to human error, override, and inconsistency. Automated controls are performed by the system (e.g., a system-enforced credit limit) and operate consistently, but depend on reliable ITGCs and correct configuration. Auditors test each differently.
Real-world example A system-enforced matching control operates consistently, while a manual review may be skipped when staff are busy.

Common follow-ups: What are the risks of manual controls? | What do automated controls depend on?

Audit Evidence & Procedures Audit Sampling Internal Controls Evaluation
All 18 Internal Controls Evaluation questions