New Internal Control Standard Has Testing Principles

With regard to the PCAOB's new audit standard for internal control over financial reporting, AS5, I have gleaned the below maxims or general principles with regard to the testing of internal controls.

· A conclusion that a control is not operating effectively can be supported by less evidence than a conclusion that it is effective.
· Re-performance of a control is greater evidence of effectiveness than observation, inspection of documentation, or inquiry.
· Inquiry alone cannot provide enough evidence to support a conclusion on a control’s effectiveness.
· Documentary evidence of the operation of some controls, such as management’s philosophy, might not exist.
· Testing controls over a greater period time provides more evidence of effectiveness.
· Testing controls closer to the date of management’s assessment provides more evidence than testing earlier in the year
· The more extensively a control is tested, the greater the evidence obtained from that test.