What Is a Walkthrough in Audit

A walk-through test is a procedure used during an audit of an entity’s accounting system to gauge its reliability. A walk-through test traces a transaction step-by-step through the accounting system from its inception to the final disposition.

Are walkthroughs required in an audit?

While walkthroughs are not specifically required in the audit standards, you do need to verify your understanding of the accounting system and related controls.

Why is a walkthrough important?

A walkthrough, also known as a walkaround or walkaround observation, allows businesses and their employees to understand better the work environment, its surroundings and the risks they are exposed to if not carefully instructed about how the work areas should be handled.