Audit Procedures and Techniques:
Audit Procedures means the way of doing Audit, the techniques which use during the audit.
The Audit Procedures is operated by the following procedures.
1. Record’s Examination:
This Audit procedure is commonly used by the auditors. The inspection of books and documents is made to verify the validity of data.
The second audit procedures/techniques is compliance
to check the arithmetical accuracy of accounting record, the balancing accounts can be compared with the vouchers to test the reliability of data.
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The third audit procedures/techniques are Ticking, means the policy if the work against an entry in books of accounts to show that it has been examined by the audit various arks are used for addition, posting calling, forward and balance etc.
Ticking is generally done with indelible pencil, although some auditors also use pen and ink for this purpose.
Casting means the checking of addition and financial statements .This job is generally done by junior audit staff. Most auditors used mechanical instruments for this purpose.
5. Calling Over:
Calling over means the completion of entries in a book with its supporting documents or vouchers .This job is done by two clerks one reading the item to the other clerk pronunciation is necessary to distinguish between some words like these 31-40, 45-65 etc
Vouching is very important audit procedures / techniques The act of vouching consist of checking the documentary evidence (cash memo, bills, invoices) as should establish. The accuracy and truthfulness of the entries appearing in the books of accounts and in those cases where it is not so, the matter are noted or discussion and if the auditors still remains unsatisfied, the outstanding are reported to the client.
When an auditor has vouched the entries appearing in the books of accounts his duty is not thereby fly discharged if appointed for audit under the act he has to report whether or not the balance sheet exhibits a true and correct view of the state of affairs of the company for this purpose he should satisfy himself on the following points.
- The each asset and liability is correctly valued and correctly stated in the balance sheet.
- That the actually existed at the date of the balance sheet.
- That they are properly of the business.
- That they are not suffering from a charge except that disclosed in the balance sheet.
The Audit Procedures/techniques carried out to achieve the forgoing objective are known as “verification”.
After the above steps, the auditor is required to bring to the knowledge of his clients what he has come across during the process of auditing.
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