1-Techniques of Auditing
Ticking indicates the placing of a mark against an entry in the book to denote that ithas been examined by the auditor for a certain purpose. To ensure consistency, mostof the good auditors use a tick chart which is required to be learnt by the heart by allthe members of the audit staff.
Casting refers to the checking of additions of books
accounts and financial statements.It is essential that arithmetical accuracy be checked so that frauds or errors (if any)may be detected. This job is normally done by the junior member of audit staff.
A sizable part of the work of audit consistent of the comparison of entries in two ormore books or of an entry in a book with its supporting evidence.
The function of the voucher is to authenticate an entry and the auditor must satisfyhimself that it does exist. It must correspond in date and account to the entry in thebooks.
When an auditor has vouched the entries appearing in the books of account, his dutyis not thereby fully discharged. If appointed for audit under the Act, he has to reportwhether or not financial statements present true and correct view to the state of thecompany.
After the above steps have been performed, the auditor will then be required to submithis report.
2-Procedures Affecting Audit
These tests are designed to obtain reasonable assurance that those internal controls onwhich audit reliance is to be placed are in effect.
These are designed to obtain evidence as to the completeness, accuracy and validity of the data produced by the accounting system.