Prepare the chart illustrating different audit procedures. Also explain how the auditor obtains evidence in performing those audit procedures.

Auditing and Assurance Revision Questions and Answers

Answer
Chart showing audit procedures

The auditor obtains evidence in performing compliance and substantive procedures 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 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.



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