Audit procedures

Audit Procedures Explained

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In order to perform substantive tests and tests of control, auditors can use a variety of techniques. These are:

 

  • Inspection (examining records, documents or assets).
  • Observation (Watching a process or procedure being performed by someone else).
  • External Confirmation (confirming something with a third party).
  • Re-calculation (checking the mathematical accuracy of documents or records).
  • Re-performance (auditor independently re-performs procedures or controls originally performed by the client).
  • Analytical procedures (making comparisons of financial information to try to identify fluctuations or unusual results).

Evidence Gathering Technique

 

 

You can remember some of these techniques by using the mnemonic AEIOU.

 

  • A analytical Procedures

 

  • E External Confirmation

 

  • I inspection

 

  • O observation

 

  • RecalcU

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