Professional Documents
Culture Documents
Audit
Procedures
PSA 200 (Revised and Redrafted), “Overall
Objectives of the Independent Auditor and the
Conduct of an Audit in accordance with PSA”
Establishes the independent auditor’s overall
responsibilities when conducting an audit of FS
in accordance with PSAs. It sets out the overall
objectives of the independent auditor and
explains the nature and scope of an audit
designed to enable the independent auditor to
meet those objectives which includes basically
to express an opinion on whether the FS are
prepared in all material respects, in accordance
with an applicable financial reporting framework.
Audit Procedures
-methods or acts that auditors use to gather evidence to
determine the validity of FS assertions.
(a) Inspection / Physical Examination
(b) Observation
(f) Reconciliation
(g) Vouching
2. Substantive Tests
These are tests done to obtain evidence of the validity
and the propriety of the accounting treatment of
transaction and balances, or, conversely, of errors or
irregularities therein.
Types of Compliance Tests
1) No Trail
This type does not leave a visible trail in the supporting
documents of the performance of control procedures
by the client’s employee.
2) Documentary Trail
This type leaves a visible trail in the supporting
documents.
Types of Substantive Tests
1) Tests of Details
This type of substantive test involves obtaining evidential matter on the
items (or details) involved in an account balance or class of transactions.
It is also referred to as follows:
Tests of Transactions
These are tests of the processing of individual transactions by inspection
of the documents and accounting records involved in processing.
Tests of Balances
These are tests applied directly to the details of balances in general
ledger accounts.