IPE testing

IPE, or Information Produced by Entity, is any internally generated data used by auditors in performing substantive or control testing (e.g., reports, lists, schedules, or extracts from the client’s IT systems). For example, an accounts receivable aging report, a sales invoice report, or a fixed asset listing are all forms of IPE that might serve as audit evidence. Because IPE is created by the client, auditors must perform specific procedures to assess the accuracy, completeness, and relevance of this information.

OnPoint Audit PCAOB includes checklists in each financial statement area folder to assist with IPE testing. The IPE testing checklists support two approaches to testing:

  • Test of controls: Tests the controls relevant to the accuracy and completeness of the extraction of the information from the company's system.

  • Test of details: Test the details of any reports, agreeing a sample back to the system.

IPE testing checklists will become visible in the respective financial statement area folder when you answer “No” to the following Data reliability procedures in the audit work program:

  • Has the design and operating effectiveness of the controls over the financial information that will be used in the below procedure been tested?

  • Have other tests of detail been completed in relation to the accuracy and completeness of the data?

The questions in the work program that determine if IPE testing checklists are visible.