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What are the different types of audit procedures?

What are Audit Procedures?

  • Classification testing. Audit procedures are used to decide whether transactions were classified correctly in the accounting records. …
  • Completeness testing. …
  • Cutoff testing. …
  • Occurrence testing. …
  • Existence testing. …
  • Rights and obligations testing. …
  • Valuation testing.

When should analytical procedures be used?

Analytical procedures are performed as an overall review of the financial statements at the end of the audit to assess whether they are consistent with the auditor’s understanding of the entity. Final analytical procedures are not conducted to obtain additional substantive assurance.

What analytical procedures would you undertake to reach a decision?

Performing analytical procedures generally follows this four-step process:

  • Form an expectation. Here, the auditor develops an expectation of an account balance or financial relationship. …
  • Identify differences between expected and reported amounts. …
  • Investigate the reason. …
  • Evaluate differences.

What does analytical evidence involve?

Analytical procedures are a type of evidence used during an audit. … Analytical procedures involve comparisons of different sets of financial and operational information, to see if historical relationships are continuing forward into the period under review.

Is recalculation an analytical procedure?

Typically, there are five audit procedures that normally use by auditors to obtain audit evidence. Those five audit procedures include Analytical review, inquiry, observation, inspection, and recalculation.