SCOPE AND

PROCEDURES OF
AUDIT.
Junaid Ali
2k19/DBBA/28
What is Audit?
◦ A financial audit is an objective
examination and evaluation of
the financial statements of an
organization.
Scope Of Audit
◦ The audit scope, ultimately,
establishes how deeply an audit
is performed. It can range from
simple to complete, including all
company documents.
Procedures Of Audit.
◦ five types of audit procedures
normally use by auditors to
obtain audit evidence.
Inspection:

Inspection refers to verification or vouching

documents. This is one of the most important,
and 60% of audit work involves the inspection
of documents.
Recalculation:

Recalculation is the type of audit procedure

normally done by re-performing the works
performed by the client to assess if there is
any difference between the audit’s work
and the client’s work.
Analytical Procedure:
The analytical procedure could be
used for the types of transactions or
events that occur regularly or connect
with others’ transactions or events.
Observation:
Observation is one of the audit
procedures that auditors use to
understand and gather audit
evidence mainly to the real
process or how clients have done
some specific business process.
Confirmation:

Auditors inquire about an

accountant and related management
to gather information and explain
the matter found by auditors.