This technique enables the auditor to obtain and evaluate the evidence of some characteristics of the whole class. He can get the information from resource persons inside or outside the enterprise.Īuditor can select few items from whole accounting information. The auditor can also use the technique of inquiry. This technique is commonly used by the auditors, The inspection of books and documents is made to verity the validity of data. Techniques of auditing means the procedure and method which is adopted by the auditor in checking the accounts.įollowing are the important techniques of audit : TECHNIQUES OF AUDITING or AUDIT TECHNIQUES :. The auditor can draw conclusion and disclose the facts and figures about the business for general information. To frame his opinion, he keeps in view the evidence obtained from the books.Īccording the principle of auditing a report will be prepared by the auditor at the end. The auditor will examine the accounting system and inter control. The auditor prepares the working paper and kept in this custody as a proof. The auditor collect documents providing evidence that audit was carried out according the principles. To protect the rights of the interested parties rules must be applied. The business activities may run within the rules and legal formalities. In this regard there should be consistency and changes are not acceptable. In case of selecting the rates of depreciation and valuation of stock the accountant must follow the rates of the coming years. It is an important principle of auditing. The nature and source of evidence must be kept in view by the auditor. He can frame his opinion on the audit evidence. He cannot disclose any information to the third party.ĭuring the audit the auditor can collect the evidence through the working papers. Secrecy must be maintained by the auditor during the process of audit. Keeping in view this principle his personal views may not be included in the audit report. In case of audit the attitude of the auditor must be impartial. The loyalty of auditor to work and profession must be beyond the doubts. Honesty and sincerity is the second important principle of auditing. In planning auditor decides accounting about the system and internal control procedure. The auditor should plan before starting the work. We discuss the main principles of auditing under these headings : These principles can be changed according the desire of the auditor. Fundamental principles are those according to which the books of business accounts are audited.

Auditing principles and practices pdf