Audit Procedures (18)

Form of enquiry that enables the auditor to obtain information directly from an independent source outside the entity. Normally the entity makes the request with the auditor controlling the mailing of enquiry.

• confirmation

• inspection

• recalculation

• observation

Involve examining support for the closing balance directly.

• tests of details of balances

• vouching

• scanning

• tests of details of transactions

Made to provide evidence about the effectiveness of the design and operations of internal control structure policies and procedures.

• auditing procedures

• tests of controls

• reperformance

• tests of details of transactions

Comparing recorded accounting data with historical information, budget expectations or external benchmarks.

• auditing procedures

• recalculation

• analytical procedures

• tests of controls

Check calculations and reconciliations made by the entity. Amounts calculated for depreciation and accrued interest may be recalculated.

• recalculation

• observation

• inspection

• reperformance

Less careful scrutiny of documents and records. Inspect tangible resources so auditor has personal knowledge.

• observation

• inspection

• scanning

• vouching

Inspecting documents created when transactions were executed and determines that information from the documents was properly recorded in accounting records.

• tracing

• enquiry

• scanning

• vouching

Auditor may perform procedures:

-perform calculations and comparisons

-scan a file to determine all documents in a series have been accounted for

-select a sample of receivables for confirmation

-re-performing a variety of calculations

-compare data elements in different files for agreement

• analytical procedures

• computer-assisted audit techniques

• auditing procedures

• tests of controls

Careful scrutiny/detailed examination of entity's documents, records and physical exam of tangible resources.

• scanning

• inspection

• vouching

• reperformance

Involve examining support for the individual debits and credits posted to an account.

• tests of details of balances

• tests of controls

• tests of details of transactions

• analytical procedures