Why Internal Audit Teams Should Control Test

Internal audit teams are central to protecting organizations from risk and ensuring that business operations, reporting, and compliance activities are reliable. As the third line of defense, they provide independent assurance that the first line (management controls) and the second line (risk and compliance functions) are working effectively. This independence makes internal audit uniquely positioned to evaluate controls objectively and highlight gaps that others may overlook.

But controls are only as strong as their execution. Simply putting controls in place is not enough; they must be tested to confirm they actually work.

That is the role of control testing. It provides the evidence needed to show that controls are not just documented on paper but effective in practice. Without testing, organizations risk relying on controls that fail to mitigate the risks they were designed for, exposing the business to compliance issues, financial misstatements, and reputational damage.

In this article, we will explore:

• What control testing is
• Why it matters for internal audit teams
• Key questions to ask when testing controls
• How Impero can help make the process efficient and reliable

What Is Control Testing?

At its core, control testing comes down to one question: Does the control achieve its objective?

To answer that, internal audit teams typically evaluate two dimensions:

• Design effectiveness – Is the control logically designed to mitigate the identified risk?
• Operating effectiveness – Is the control consistently performed, producing reliable results in practice?

Testing both design and operation ensures that controls are not only theoretically sound but also functional in real-world conditions.

Why Internal Audit Teams Should Control Test

1. Uncover Risks Before They Escalate
   Controls that look strong on paper can still fail in practice. Control testing helps audit teams find weaknesses early, reducing the chance of compliance violations, fraud, or operational errors.
2. Demonstrate Compliance with Confidence
   Regulators and external auditors expect proof, not just documentation. Testing provides tangible evidence that controls are effective, strengthening compliance and building trust with stakeholders.
3. Strengthen Assurance for Management and the Board
   Audit teams play a vital role in giving leadership confidence. Testing creates data-backed insights, showing where controls are effective and where improvements are needed.
4. Improve Processes and Efficiency
   Control testing is also an opportunity for continuous improvement. It can reveal redundancies, highlight inefficiencies, and help streamline workflows across the organization.
5. Increase Audit Efficiency
   Systematic, repeatable testing reduces time spent chasing documentation and enables audit teams to focus on higher-value analysis.

Questions to Guide Control Testing

Effective control testing goes beyond reviewing documents; it requires asking the right questions. These guide audit teams in evaluating both the activity itself and the broader purpose of the control.

At the Activity Level:

• Was the control completed according to its written procedure?
• Do the individuals performing and reviewing the control have the right authority and competence?
• Would the control produce the same result if repeated?

At the Overall Control Level:

• Do the activities performed serve the objective of the control?
• Does the control’s objective address the underlying risk or potential source of misstatement?

Asking these questions helps ensure that controls are not only followed but also effective in addressing risks.

The Challenge: Manual Control Testing

Many audit teams still rely on spreadsheets, emails, and scattered documents to perform control testing. This manual approach is:

• Time-consuming – valuable hours are lost chasing evidence
• Error-prone – inconsistencies and oversights become more likely
• Lacking transparency – it is difficult to provide a clear audit trail to regulators or management

These challenges limit the effectiveness of internal audit and add unnecessary pressure to already resource-constrained teams.

How Impero Supports Control Testing

Impero’s new Control Testing module helps audit teams overcome these challenges by bringing structure, flexibility, and scalability to testing.

With Impero, audit teams can:

• Set up control tests in bulk
• Schedule ad hoc tests as needed
• Select samples across control programs and entities
• Capture results and evidence in one place for audit readiness
• Connect risks, controls, and testing in a unified platform

This makes it easier to demonstrate compliance with frameworks such as SOX, IFRS, or the UK Corporate Governance Code, while also meeting today’s higher expectations for continuous validation.

Final Thoughts: Building Stronger Assurance

Control testing is not just about compliance. It is about giving management, boards, regulators, and stakeholders the assurance that risks are being addressed effectively. By regularly testing controls, audit teams move from a reactive approach to a proactive one — identifying issues early, improving processes, and safeguarding the business.

With Impero’s Control Testing module, the process becomes faster, more consistent, and more transparent, empowering internal audit teams to deliver greater value across the organization.

👉 Learn more about Impero Control Testing