What is a Walk-Through Test?

In auditing and accounting, a walk-through test is a technique or a measure used by auditors to ascertain the authenticity and reliability of a company's accounting system. Auditors use the walk-through test procedure to each step of a transaction, this means, all the transactions of an entity or a business are traced to confirm whether the entity's accounting system is reliable. The procedure entails the tracking of the accounting system from when it was established to when it was disposed.

How Does a Walk-Through Test Work? 

There are many assessment procedures that auditors use for accounting control and risk management. A walk-through test is used as a measure to the strength and weakness of a company's accounting system. This procedure features a number of steps such as tracking and examining the start of a business transaction up till when the transaction was concluded. The walk-through test helps auditors gauge the reliability of the accounting system, it is also a risk assessment procedure that helps auditors detect whether the company is lacking in any area of accounting.

What Auditors Look For

When using the walk-through test procedure, auditors look out for how transactions are organized, recorded and reported by business entities. They assess how accurate each step of the transaction is and whether they are not faulted in any area. How businesses apply controls of accuracy and follow-up measures applied, are also what auditors look out for. Auditors also measure the authenticity of a company's accounting system and adherence to accounting rules using the walk-through test. During the test procedures, deficiencies in accounting systems can be identified and rectified. Business personnel that are involved in each transaction are also identified and documented using the walk-through test.