What is audit procedure? What audit procedures do the auditors need to know?

Auditing procedures are extremely important and quite complex . If you are learning about audit procedures, please refer to the following article!

What is audit procedure?

Auditing procedures in financial statements

Audit procedures are tasks conducted by auditors to collect identified audit evidence associated with audit objectives in accordance with regulations.

What audit procedures do the auditors need to know?

There are three audit procedures that the auditor must know:

Risk assessment procedure

Business is very risky!

The auditor needs to collect information about the audited entity and the operating environment, including internal control, based on which to assess the risk of material misstatements in the client’s financial statements. row.

Control operation check procedure

Every job must be tested to be effective

The auditor’s understanding of internal control is used to assess the risks to the transaction and related audit objectives.

Basic audit procedures

Substantive audit procedures play an important role

Substantive audit procedures are important in obtaining sufficient audit evidence. There are three basic audit procedures :

• A test of business details is a procedure used to determine whether the relevant business audit objectives have been violated for each transaction.

• Analytical procedures show the comparison of the amount recognized with the expected, expected data in general.

• The procedure of checking details of balance is a procedure that helps the auditor to obtain audit evidence with high reliability and accuracy.

Why do you need an audit?

Auditing procedures are essential when preparing financial statements

Auditing procedures bring many benefits to the auditor’s financial reporting, namely:

• To serve the purpose of assessment and collection of audit evidence.

• When combining audit procedures with other procedures such as interview procedures, observational audit procedures, calculations, confirmations, etc., it creates the highest efficiency in the auditor’s financial reporting. .

• Check for inconsistencies or deviations in documents and information from the original plan to minimize risks in financial statements.

Hope through the article What is the audit procedure? What audit procedures do the auditors need to know? Tnhelearning.edu.vn has helped you to have more necessary information about audit procedures!

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