Meaning of audit procedure

Audit procedure is series of action plan taken by auditor in the process of conducting audit .Sometime audit procedure and audit programs are used as same.

Following are the steps in the audit procdure.

Digram

1.KYC-Know your client or organisation

2.Audit planing and strategy

3.Obtain audit evidences

4.Evalute and asses the impact of evidences

5.Exercise professional judgement

6.Reporting and documention

Audit procedure or Methods or Techniques for obataining audit evidences-

Audit procedures or methods or techniques to obtain audit evidence can be following.

1	Inspection	Examining records and documents with physical existence
2	Observation	Looking at process being carried out – example Inventory taking by employee of the entity
3	External Conﬁrmation	audit evidence obtained by the auditor as a direct written response to the auditor from a third party (the confirming party), in paper form, or by electronic or another medium.
4	Recalculation-	Checking the mathematical accuracy of documents or records.
5	Reperformance	auditor’s independent execution of procedures or controls that were originally performed as part of the entity’s internal control
6	Analytical Procedures-	Evaluations of ﬁnancial information. Interpreting relationships among both ﬁnancial and non- ﬁnancial data. Financial data includes - advertising costs, sales revenue, employee compensation and the value of assets. Nonfinancial information include -Environmental impact, relationship with your vendors, diversity in the workplace and social responsibility.
7	Inquiry	seeking information of knowledgeable persons, both financial and non-financial, within the entity or outside the entity.