Audit procedures are a task performed by auditors to collect specific audit evidence related to audit objectives. So what is the term audit procedure? Let’s find out related information with MISA MeInvoice in the following article.
Note: Before learning about auditing procedures, you may want to learn some necessary information about auditing. Click on the article to see more details.
Audit procedures is a term used to refer to a specific job performed by an auditor to collect specific
audit evidence associated with the audit objective.
2. Classification of audit procedures
Risk assessment procedure This is an auditing standard that requires the auditor to obtain an understanding of the audited entity and its operating environment, including internal controls, in order to assess the risk of material misstatement in iraq telegram data the client’s financial statements.
Control Operation Test Procedure This is the auditor’s understanding of internal control used to assess control risk for each transaction – Related Audit Objective.
Basic Audit Procedures – This procedure is especially important in collecting appropriate and sufficient audit evidence.
There are 03 basic audit procedures including
Detailed transaction salons promote a beauty inspection procedure; Analytical procedure; Detailed balance inspection procedure. Specifically:
Detailed transaction testing procedures: used to determine china data whether the audit objectives of related transactions have been violated or not corresponding to each transaction.
Analytical procedures: involve a comparison of recorded amounts with estimates/plans or general expectations given by the auditor.
Test of details of balances: is a procedure that helps auditors collect highly reliable audit evidence.
Characteristics of audit procedures
First: Each audit procedure used has certain strengths and weaknesses, so auditors need to consider them when using them to perform the audit engagement.
Second: The auditor’s purpose is to determine audit procedures to collect reliable evidence, in order to gain a certain understanding of audit risks at the least cost.
Third: Auditors need to seek sufficient and reliable audit evidence from three different stages in the audit process. However, when auditors perform audit procedures, conflicts arise that need to be considered and resolved (such as audit costs versus reliability and quantity of evidence).Above is the information related to auditing procedures. In addition, to help general accountants and chief accountants monitor and manage invoice usage quickly and accurately through reports and visual charts, MISA pioneered the launch of MeInvoice electronic invoice software .