Auditing in depth short notes

Auditing and Assurance Revision Questions and Answers

Answer

Audit in depth implies a detailed step-by-step examination of selected transactions tracing all the links from the very beginning to the end. Thus, if a purchase invoice is subjected to audit in depth, the auditor will examine the original requisition slip, the purchase order, the tenders against which the purchase order was made, the goods receipt note, the store inspection report, the quality control report and entries in the bin card and store ledger. Thus, while auditing a transaction in depth, the auditor, reviews all the accounting and operational aspects of the transaction, from the origin to the end.

Advantages of Auditing in-depth

  1. Quick completion of audit work
  2. Saves cost and time
  3. Safeguards against manipulation of accounts
  4. Helpful in planning the audit

Disadvantages of Auditing in-depth

  1. Possibility of wrong selection of items
  2. Unsuitable for small business concerns
  3. No objective method
  4. Based on intuition

 



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