Audit software is used to interrogate a client’s system. It can be either packaged, off-the-shelf software or it can be purpose written to work on a client’s system. The main advantage of these programs is that they can be used to scrutinize large volumes of data, which it would be inefficient to do manually. The programs can then present the … Read the rest
Auditors design detailed audit procedures to obtain sufficient appropriate audit evidence. Procedures can include inspection, observation, confirmation, recalculation, re performance, and analytical procedures, often in some combination.
The following are three types of audit procedures:
Risk assessment procedures
Risk assessment procedures are procedures to obtain an understanding of the entity and its Internal control to assess the risk of material misstatement at … Read the rest
Financial audit is the independent inspection of an entity financial information to issue opinion on their truth and fairness. It is independent inspection since someone (auditor) who is not the employee or partner in the entity is required to perform the audit.
Financial audit planning is the process of establishing strategy and detailed audit program which will enable the audit … Read the rest
Audit evidence can be obtained either through basic accounting records or documents obtained from third parties upon request by the auditor. This technique of obtaining information from the third part is normally referred to as direct confirmation.
(i) Discuss the quality of audit evidence generated by direct confirmation techniques, giving three examples where the techniques might be used.
(ii) … Read the rest