What techniques used during an audit?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 kruthika asked almost 3 years ago

Hi, Explain about the techniques used during an audit?

    0       0 Answer Now Comment Report
3 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered almost 3 years ago

1. Examination Of Record :- This technique is commonly used by the auditors, The inspection of books and documents is made to verity the validity of data. 2. Inquiry :- The auditor can also use the technique of inquiry. He can get the information from resource persons inside or outside the enterprise. 3. Sampling :- Auditor can select few items from whole accounting information. This technique enables the auditor to obtain and evaluate the evidence of some characteristics of the whole class. It is helpful in forming the conclusion.

    0       0 Comment Report
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered almost 3 years ago

Dear friend, **TECHNIQUES OF AUDITING or AUDIT TECHNIQUES :-** Techniques of auditing means the procedure and method which is adopted by the auditor in checking the accounts. Following are the important techniques of audit : 1. Examination Of Record :- This technique is commonly used by the auditors, The inspection of books and documents is made to verity the validity of data. 2. Inquiry :- The auditor can also use the technique of inquiry. He can get the information from resource persons inside or outside the enterprise. 3. Sampling :- Auditor can select few items from whole accounting information. This technique enables the auditor to obtain and evaluate the evidence of some characteristics of the whole class. It is helpful in forming the conclusion. 4. Confirmation :- To ensure the accuracy of the data auditor can collect the information from the debtor. Confirmation is response to an inquiry to prove certain data recorded in the books. 5. Compliance :- To check the arithmetical accuracy of accounting record, the balancing accounts can be compared with the vouchers to test the reliability of data. 6. Compliance Test :- These tests are designed to check the effectiveness and compliance of internal control. In obtaining the audit evidence, auditor is concerned with the existence of effective internal control. 7. Use Of Computer Techniques :- There are large number of audit techniques like audit software, test packs and mapping which can be used by the auditor to test the accuracy of the data. 8. Substantive Test :- There are designed to obtain evidence that data produced by accounting system is accurate or not. It has two kinds : a) Test of detail transaction. b) Test of significant ratios and trends. 9. Dependence On Experts And Auditors :- The auditor has to rely on the internal and other auditors to complete his work. He has also to rely on other experts like lawyers, engineers and doctors for their expert opinion about the business. 10. Analytical Review :- It consists of studying significant ratios, trends and investigating different changes. This review procedure is based on the expectations of relationship among the past and present data.

    0       0 Comment Report
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 jitendra etikala answered almost 3 years ago

> TECHNIQUES OF AUDITING or AUDIT TECHNIQUES :- Techniques of auditing means the procedure and method which is adopted by the auditor in checking the accounts. Following are the important techniques of audit : **1. Examination Of Record :-** This technique is commonly used by the auditors, The inspection of books and documents is made to verity the validity of data. **2. Inquiry :-** The auditor can also use the technique of inquiry. He can get the information from resource persons inside or outside the enterprise. **3. Sampling :-** Auditor can select few items from whole accounting information. This technique enables the auditor to obtain and evaluate the evidence of some characteristics of the whole class. It is helpful in forming the conclusion. **4. Confirmation :-** To ensure the accuracy of the data auditor can collect the information from the debtor. Confirmation is response to an inquiry to prove certain data recorded in the books. **5. Compliance :-** To check the arithmetical accuracy of accounting record, the balancing accounts can be compared with the vouchers to test the reliability of data. **6. Compliance Test :-** These tests are designed to check the effectiveness and compliance of internal control. In obtaining the audit evidence, auditor is concerned with the existence of effective internal control. **7. Use Of Computer Techniques :-** There are large number of audit techniques like audit software, test packs and mapping which can be used by the auditor to test the accuracy of the data. **8. Substantive Test :-** There are designed to obtain evidence that data produced by accounting system is accurate or not. It has two kinds : a) Test of detail transaction. b) Test of significant ratios and trends. **9. Dependence On Experts And Auditors :-** The auditor has to rely on the internal and other auditors to complete his work. He has also to rely on other experts like lawyers, engineers and doctors for their expert opinion about the business. **10. Analytical Review :-** It consists of studying significant ratios, trends and investigating different changes. This review procedure is based on the expectations of relationship among the past and present data.

    0       0 Comment Report
Get Notifications
Videos
Books
Notes
Loading
SIGN UP
Watch best faculty demo video classes

These top faculty video lectures will
help u prepare like nothing else can.