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Advanced Auditing - Special Audit Technique, Advanced Auditing

Special Audit Techniques

Techniques of auditing refer to specific art and skill used for obtaining the evidence required by the auditor. The techniques are given below are in addition to conventional audit procedures such as posting, casting and vouching.

1.       Confirmation: confirmation refers to a reply to the inquiry put forth to corroborate the information contained in the records.

2.       Surprise Checks: An element of surprise while conducting an audit improves its effectiveness. Elements of surprise in an audit may be with regard to time of audit or item of audit.

3.       Inquiry: Inquiry involves seeking appropriate information from knowledgeable sources, both inside and outside the organization.

4.       Cut -off Procedures: These are procedures employed to ensure the separation of transaction at end of one year from those at the commencement if next year.

5.       Analytical Review Procedure: This is a technique designed to obtain evidence as to completeness, validity and accuracy of data produced by accounting system.

6.       Observation: Observation consists of witnessing a process being performed by others.

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Some areas of study are given below:

1.       Statistical Sampling

2.       Audit of Fixed Assets

3.       Audit Risk

4.       Materiality in Auditing

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