Chart showing audit procedures
The auditor obtains evidence in performing compliance and substantive procedures by one or more of the following methods:
i) Inspection. It consists of examining records, documents or tangible assets.
ii) Observation. It consists of looking at a process and procedure being performed by others.
iii) Inquiry and Confirmation. Inquiry consists of seeking appropriate information from knowledgeable person inside or outside the entity. Confirmation consists of the response to an enquiry to corroborate information in the accounting records.
iv) Computation. It consists of checking the arithmetical accuracy of source documents and accounting records.
v) Analytical Review. It consists of studying significant ratios and trends and investigating unusual fluctuation and item.