Procedures and Techniques of Auditing

Audit procedures

 

1. Ascertainment the arithmetical accuracy of the books of account by checking posting, casting, cross casting, carry forwards, opening and closing balances etc.

 

2. Examining the documentary evidences and the authority in support of the transaction

 

3. Checking the validity of transaction with reference to

 

a. rules and regulations governing the constitution and management of the organization.

b. well recognized accounting principles and practices e.g, distinction between capital and revenue, accrual system of accounting, valuation principles etc.

 

4. Ensuring that information disclosure is adequate in annual financial statements and that it conveys the real picture about the asset, liabilities and operation results.

 

5. Verification of existence, owernership and title and value of the assets and determination of the extent and nature of liabilities.

 

6. Determination of significant accounting ratios and evaluating the accounts to locate areas showing departure from the expected state of affairs.

 

 

Audit techniques

 

1. Posting checking

 

2. Casting checking

 

3. Physical verification

 

4. Confirmation

 

5.Sample checking and test checking

 

6. Procedural checks

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