auditing
AUDIT TECHNIQUES
I. NATURE and PURPOSE of AUDIT TECHNIQUES
Auditing Techniques are the basic tools utilized by auditors to obtain audit evidences.
Auditing Technique is defined as any technique as any technique used to determine deviations from actual accounting and controls established by a business or organization as well as uncovering problems in established processes and controls. Auditing Techniques can be used to aid organizations by uncovering errors in business practices and providing means of protection.
The applied techniques can be determine if any income is hidden or improperly categorized or reported; transactions are being completed between the organizations and regulated or prohibited persons, groups or countries; uncovering of environmental waste discrepancies; finding of data inconsistencies; or any other business practice that can be considered as process error, oversight, or violation of ethics, regulations and laws.
II. CLASSIFICATION and DESCRIPTION of AUDIT TECHNIQUES
Audit techniques are the basic tools or means employed to obtain audit evidences. The application of these techniques constitutes the audit procedures.
A. Audit of Non-Financial Records
Non-financial records consist of:
1. The articles of incorporation
2. The by-laws
3. The minute books of the Board of Directors
4. The minute books of the stockholders
5. The articles of co-partnership (in a Partnership)
6. Contracts, leases, pension and retirement plans, labor agreement, etc.
Review of non-financial records involves a reading of these records and the extractions of pertinent information for the following purposes:
1. To obtain a concise picture of the plans and policies of management
2. To ascertain that authorized transactions are properly recorded
3. To ascertain that recorded transactions properly authorized
To review of non-financial records should be performed early in the audit because information obtained from these records will be found useful in
I. NATURE and PURPOSE of AUDIT TECHNIQUES
Auditing Techniques are the basic tools utilized by auditors to obtain audit evidences.
Auditing Technique is defined as any technique as any technique used to determine deviations from actual accounting and controls established by a business or organization as well as uncovering problems in established processes and controls. Auditing Techniques can be used to aid organizations by uncovering errors in business practices and providing means of protection.
The applied techniques can be determine if any income is hidden or improperly categorized or reported; transactions are being completed between the organizations and regulated or prohibited persons, groups or countries; uncovering of environmental waste discrepancies; finding of data inconsistencies; or any other business practice that can be considered as process error, oversight, or violation of ethics, regulations and laws.
II. CLASSIFICATION and DESCRIPTION of AUDIT TECHNIQUES
Audit techniques are the basic tools or means employed to obtain audit evidences. The application of these techniques constitutes the audit procedures.
A. Audit of Non-Financial Records
Non-financial records consist of:
1. The articles of incorporation
2. The by-laws
3. The minute books of the Board of Directors
4. The minute books of the stockholders
5. The articles of co-partnership (in a Partnership)
6. Contracts, leases, pension and retirement plans, labor agreement, etc.
Review of non-financial records involves a reading of these records and the extractions of pertinent information for the following purposes:
1. To obtain a concise picture of the plans and policies of management
2. To ascertain that authorized transactions are properly recorded
3. To ascertain that recorded transactions properly authorized
To review of non-financial records should be performed early in the audit because information obtained from these records will be found useful in