AUDIT PROCEDURES
Audit procedures are the processes
that auditors perform to obtain audit
evidences which enable them to
make conclusion on the audit
objective. (Audit Observations)
CPD For Internal Auditors
Presented by: Ali Nashath
13th May 2018
Maldives Transport and Contracting
Company PLC
Internal Audit Department
H.Sawmill, Male’ 20057, Maldives
Filigas Magu
© 2018 All Rights Reserved
TYPES AUDIT PROCEDURES
INSPECTIO INSPECTIO OBSERVATI INQUIRY
N N ASSETS ON
DOCUMEN
TS
CONFIRMATI RECALCULAT RE- ANALYTIC
ON ION PERFORMANC AL
E PROCEDU
RES
INSPECTION OF DOCUMENTS
Select sample of items from records and files from either ways:
Vouching Tracing
Select sample items from Select source documents
accounting records and and then go and find it in
then get source the accounting records
documents to support
these transactions
Moderately reliable
INSPECTION OF ASSETS
In this sort of inspections, the auditor will visit to the actual location and
conduct inspections
BUILDING VEHICLES CASH
One of the most reliable
form of audit evidence
OBSERVATION
Observing a Process or a Test of control
Procedure
Observation is an audit procedure that consists - Segregation
of looking at a process or procedure being - Process Flow
performed by others so that evidence about - Unnecessary moves / Wastages
the actual performance is obtained.
Moderately reliable
INQUIRY
Asking question Sort of a starting point?
Inquiry is a type of audit procedure that is used - Discussions
extensively during the performance of an audit - Process Flow Understanding
in addition to other procedures. It consists of - Questions and answers
seeking both financial and non-financial
information of knowledgeable persons
within or outside the entity.
Not much reliable
CONFIRMATION
Confirmations are obtained from 3 rd parties through a documented form such as:
STATEMENTS LETTER E-MAIL
Most of the cases this is
reliable as it comes from an
independent source.
RECALCULATION
Mathematical Accuracy
Recalculation is a procedure that consists
of checking the mathematical accuracy of
documents or records
Accounting Cash Ledger
System
Bills
Highly Reliable
REPERFORMANCE
Doing it by Auditor
Reperformance is the auditor's
independent execution of procedures or
controls
Doing it CAATs
manually
Reliable
ANALYTICAL PROCEDURES
RECONCILIAT RATIO VARIANCE
ION ANALYSIS
REGRESSI
ON
Moderately reliable
?
QUESTIONS
