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Types of Audit Procedures

Different procedures that you will use in performing an audit

Client Inquiry

Great starting point

Not considered very reliable

Observations

Testing Internal Controls

Considered moderately reliable

Recomputation

Testing the mathematical accuracy and consistency of internal accounting records. Very Reliable. Consists of footing and crossfooting.

Analytical Procedures

Auditors develop expectations about what will be reported in the financial statements based on their knowledge of the company, its industry, and the environment it operates in. Moderately reliable.

Physical Examination

Extremely relevant to PPE, inventory, and cash on hand. Considered very reliable.

Confirmations

Communicating with a 3rd party through a hard copy letter. Reliable because it comes from an independent source.

Inspection of records and documents

Vouching. Tracing. select sample items from accounting records and then get source documents to support these transactions. select from source documents and then go and find in the accounting records.