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9 Types of Audit Procedure - Coggle Diagram
9 Types of Audit Procedure
Inquiry
interview the client - obtain written representations
Confirmation
Obtain representations from 3rd party
Bank --> Cash Balance
Customer --> Receivable Balance
Lessor --> Lease Term
Inspections of records or documents
Source Document
Journal or ledger
Inspections of intangible asset
Verify the existence of PPE, Inventory, Livestock
Observation
Watch the client count inventory
Watch the client apply an internal control
Recalculation
Check the mathematical accuracy of depreciation, bad debts, interest and etc.
Reperformance
Broader than calculation
Reperform any client procedure (aging the account receivable)
Analytical Procedure
Evaluate the possibility of financial information
Compare GPP to last year's GPP or GPP of competing firm
Scanning
Search for unusual item to investigate - eg: credit to expense account