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What does audit methodology include

Question 1: What are the audit methods? According to the methods used in gathering evidence, audit procedures (i.e., audit methods) can be categorized as:

(a) Inspection

Inspection refers to the CPA's review of records or documents generated internally or externally by the audited entity, in paper, electronic or other media, or the physical examination of assets.

The purpose of an inspection of records or documents is to validate the information contained or to be contained in the financial statements.

1. Inspection of records or documents may provide audit evidence of varying degrees of reliability, and the reliability of audit evidence depends on the source and nature of the records or documents.

2. When examining an internal record or document, its reliability depends on the effectiveness of the internal control that generated it. An example of the use of inspection as a test of control is the examination of records to obtain audit evidence of authorization.

3. Certain documents are direct audit evidence of the existence of an asset, such as stocks or bonds that constitute a financial instrument, but examining such documents does not necessarily provide audit evidence of ownership or valuation.

4. Examination of tangible assets may provide reliable audit evidence of their existence, but may not necessarily provide reliable audit evidence of rights and obligations or valuation determinations.

(ii) Observation

1. Observation means that the CPA looks at the activities being performed or the procedures being carried out by the relevant personnel. For example, observation of inventory counts or control activities performed by the client.

2. Observation may provide audit evidence of the performance of the process or procedure, but the audit evidence provided by observation is limited to the point in time at which the observation occurs, and the behavior of the person being observed may be affected by being observed, which may also limit the audit evidence provided by observation.

Note: General observation procedures address the implementation of internal control. It is mainly used in the understanding of internal control and control testing.

1. Inquiry refers to the process by which the CPA obtains financial and non-financial information in writing or orally, from knowledgeable persons inside or outside the audited entity, and evaluates the responses.

2. The response of the informed person to the inquiry may provide the CPA with information or evidence that the CPA has not yet been informed of, or may provide information that is materially different from other information that the CPA has obtained.

3. When inquiring about management's intent, the information obtained to support management's intent may be limited. In such cases, (1) knowledge of the fulfillment of management's stated intentions in the past, (2) the stated reasons for selecting a particular measure, and (3) the ability to implement a specific measure may provide relevant information to corroborate the evidence obtained through questioning.

For certain matters, the CPA may find it necessary to obtain written statements from management and governance, as applicable, to corroborate responses to oral inquiries.

(4) Correspondence

1. Correspondence refers to the process of obtaining a written response directly from a third party (the person being questioned) to be used as audit evidence, which may be in the form of paper, electronic or other media.

2. Correspondence is often the relevant procedure when it is directed at determinations related to specific account balances and their items. However, the letter need not be limited to account balances. For example, the CPA may request a letter regarding the terms of agreements and transactions between the audited entity and third parties. The CPA may ask in the letter of inquiry whether the agreement has been modified and, if so, request the auditee to provide relevant details.

3. Correspondence procedures can also be used to obtain audit evidence of the non-existence of certain circumstances, such as the non-existence of "behind-the-scenes agreements" that may affect the revenue recognition of the audited entity.

(E) recalculation

Recalculation refers to the certified public accountant on the records or documents of the data calculated to verify the accuracy. Recalculations can be performed manually or electronically.

(F) Re-execution

Re-execution means that the CPA independently executes the procedures or controls that are part of the audited entity's internal controls.

Tip: re-execution can only be used for control testing.

(VII) analytical procedures

Analytical procedures refer to the CPA's evaluation of financial information by examining the intrinsic relationships between different financial data and between financial and non-financial data. Analytical procedures also include investigating fluctuations and relationships identified that are inconsistent with other relevant information or that deviate significantly from expected data... >>

Question 2: What are the audit methods? According to the method used to collect evidence, audit procedures (i.e., audit methods) can be divided into:

(a) Inspection

Inspection refers to the certified public accountant's review of the audited entity internally or externally generated, in the form of paper, electronic or other media of the existence of the records or documents, or the physical examination of assets.

The purpose of an inspection of records or documents is to validate the information contained or to be contained in the financial statements.

1. Examination of records or documents may provide audit evidence of varying degrees of reliability, and the reliability of audit evidence depends on the source and nature of the records or documents.

(ii) Observation

Note: General observation procedures address the implementation of internal control. It is mainly used in the understanding of internal control and control testing.

2. The response of the informed person to the inquiry may provide the CPA with information or supporting evidence that the CPA has not yet been informed of, or may provide information that is materially different from other information that the CPA has obtained.

For certain matters, the CPA may find it necessary to obtain written statements from management and governance, as applicable, to corroborate responses to oral inquiries.

(4) Correspondence

(E) recalculation

Recalculation refers to the certified public accountant on the records or documents of the data calculated to verify the accuracy. Recalculations can be performed manually or electronically.

(F) Re-execution

Re-execution means that the CPA independently executes the procedures or controls that are part of the audited entity's internal controls.

Tip: re-execution can only be used for control testing.

(VII) analytical procedures

Question 3: What is included in the audit (a) according to the audit subject classification

1, the state audit 2, departments, units of internal audit 3, civil audit

(b) according to the content of the audit classification

1, financial audits 2, financial law and discipline audits 3, the audit of economic efficiency

1, all the audit 2, local audit 3, special audit

(D) Anhui audit time classification

1, pre-audit 2, post-audit 3, the initial audit 4, re-audit 5, interim audit

6, the final audit 7, continue to audit the staging

(E) according to the audit of whether or not to notify the audited unit classification

(V) according to whether or not to notify the audited unit classification

1, notify the audit 2, surprise audit

(F) according to the relationship between the audit and the audited classification

1, external audit 2, internal audit 3, supervision and audit

Question 4: What are the methods of audit judgment? Hello classmates, I'm glad to answer your question!

There are many methods of audit judgment, mainly including induction, deduction, comparative judgment, factual judgment and value judgment.

I hope my answer can help you solve the problem, if you are satisfied, please adopt the best answer yo.

Thank you again for your question, more accounting issues are welcome to submit to Gordon Enterprise Knowledge.

We wish you a happy life!

Question 5: What does the basic theory of auditing include Auditing is authorized by the state or entrusted to full-time institutions and personnel, in accordance with state regulations, auditing standards and accounting theory, the use of specialized methods, the audited unit of finance, financial revenue and expenditure, business management activities and their related information on the authenticity of the correctness, compliance, legality and efficiency of the review and supervision, evaluation of the economic Responsibility, identification of economic operations, to maintain financial discipline, improve management, improve economic efficiency of an independent economic supervision activities.

Question 6: What are the contents of a management audit? Management audit content includes:

1, a review of business strategy;

2, a review of the organizational structure of the enterprise;

3, a review of the business plan;

4, a review of the internal control of the enterprise

Extension of reading:

Management Audit is a modern audit of a new type of audit, which is an inevitable result of the development of the economy, but also the cause of the audit. The inevitable result, but also the inevitable result of the development of the audit, is the auditor of the audited unit of economic management behavior supervision, inspection and evaluation and in-depth analysis of an activity. Its purpose is to make the resource allocation of the audited unit more efficient. From the auxiliary means of management audit, it is relative to the financial audit of a concept, from the audited unit's economic activities, management audit is relative to the audit of a perception. For enterprises, operation speaks of the market, management speaks of efficiency. In this sense, management audit can be called efficiency audit.

Management audit is to improve the quality of management and improve the management level of enterprises for the purpose of reviewing the audited matters in the planning, organization, leadership control, decision-making and other management functions of the performance of the audited unit to improve the level of management in order to improve the economy of business activities, efficiency and effectiveness of a management activity

Management Process Audit

Management Process Audit is a management audit. Refers to planning, organization, decision-making and control of management functions as the object of a kind of economic efficiency audit. It is through the various management functions of the soundness and effectiveness of the assessment, in order to examine the level of management, the quality of the management of the merits and demerits of the management activities of the economy, efficiency, and for the management of the problems that exist in the proposed recommendations and suggestions for improvement. For example, the review of the decision-making function should mainly find out whether scientific decision-making and procedures are formulated, whether reasonable decision-making principles are observed, whether the decision-making methods are scientific and appropriate, and whether the results of decision-making are correct. The review of the control function should mainly find out whether there is a sound and scientific internal control system, whether the control system is strictly enforced, and how effective it is in practice.

Management Audit

Management Audit, is the management of the enterprise as the basic object, through the management of the enterprise should bear the economic responsibility and fulfillment of the status of the audit and the quality of management personnel, to promote the enterprise to improve the economic efficiency of a kind of audit activities. For example, the audit of the equipment and material management department should find out whether it has fulfilled its responsibilities for the formulation of material consumption and storage quotas, procurement, storage, receipt and maintenance. The review of the financial department should find out whether the accounting work follows the accounting regulations and whether there is a strict cost control system; whether effective measures have been taken to raise funds, reduce the use of funds and improve the efficiency of the use of funds and so on. Enterprise internal audit department to carry out management audit, from the past error correction and prevention, play the role of "police" mainly to the high-level "staff, eyes and ears, assistant" direction; from the authenticity, compliance audit mainly to focus on the direction of the development of efficiency audits; from the financial statements centered on the financial income and expenditure audits. Financial statements as the center of the audit of financial income and expenditure to the internal control as the center of the financial basis of the audit of the direction of development; from the after the audit to the audit beforehand, in the direction of the development of the audit.

Question 7: What are the technical methods of auditing? (A) the establishment of the thinking model

Before carrying out management audits, only a correct understanding of management audits, and give full consideration to the audit effect, audit techniques and audit risk and other factors, in order to do a good job of management audits. The so-called thinking model refers to the auditor's thinking habits. Good thinking habits are the prerequisite and foundation for carrying out management audit. According to the author's practice, the management audit thinking model should be this:

Set up a management audit is a management efficiency and control of the audit concept ?ú Consider the management audit project to be carried out on the effect of the enterprise ?ú Consider the management audit to be carried out on the technical complexity of the audit and the audit risk ?ú Consider the audit methodology ?ú

(B) Audit methodology ?ú

1. "Cause and effect analysis" and "cause and effect analysis". The "cause and effect analysis method" is to start from the cause of the event and finally find out the corresponding results. On the other hand, the "cause and effect" method looks at the result of the event and analyzes the cause of the problem. Both methods have their advantages and disadvantages. The advantage of the "cause and effect analysis" is that it is step-by-step, interlocking, and the audit is more comprehensive, but the disadvantage is that the audit takes longer and is more technically difficult. The advantage of the "cause and effect analysis" method is that it is easy to trace the cause and effect, and requires less time, but the disadvantage is that the audit process is easy to take the point with the surface, and the content is not comprehensive enough. Which method is more effective depends on the specific audit situation and audit purpose. Generally speaking, in the absence of audit trails, more use of "cause and effect analysis", if the auditors have audit trails, in order to improve the efficiency of the audit, you can consider the use of "cause and effect analysis".

2. "Curtains in the middle of the open type" audit method. If a curtain consists of two, in the sunny morning, we pull from the center, the eyes will quickly brighten up. This method of pulling the curtains applied to the management audit, will also play double the effect of half the effort. Specifically, it is the auditor according to the audit trail, based on their own professional experience, to make a judgment on the causes of the problem. At the same time, to the "left" to trace the overall pulse of the cause of the problem, to the "right" to verify and analyze the accuracy of their own judgment. This method can also be called "preconceived notions" method. For example, a project cost management audit, it is known that the cost of the project is too high. Auditors based on empirical judgment, know that the cause of the problem is the high cost of material procurement. According to this judgment, the auditor can "left" to trace the material procurement process and management, to the "right" can be sampling through the way of bills, specific verification of the material procurement cost is really too high. If the results of the "right" to verify the auditor's judgment, to the "left" of the work has been completed, the management audit can be initially concluded. The advantage of this audit method is that the efficiency of the work will be greatly improved, but the disadvantage is that if the auditor's judgment is biased, it will delay the progress of the audit. Therefore, the use of the audit method, the professional experience of the auditors should not be used.

3. "Compliance" audit method and "innovative thinking" audit method. "Compliance" audit method is for the management audit found in the problem, based on the existing management model and inherent habits of thought, the problem of right and wrong to make a judgment. "Thinking innovative" audit law, on the contrary, it is based on the actual situation of the audited unit and break the original way of thinking, to make judgments on the problem. For example, the issue of temporary employment in enterprises, according to the inherent management mode of state-owned enterprises and the inherent way of thinking, the temporary employment of enterprises is not desirable, because the state-owned enterprises themselves have redundancies. According to the "compliance" audit method, the practice of temporary employment will be rejected. However, if we adopt the "innovative thinking" method and think about the problem from a different angle, we may come to a different conclusion. If due to temporary labor can make the production efficiency, the economic benefits of the work to be greater than the use of state-owned enterprises idle workers, and this greater than the benefits can be enough to offset the cost of temporary labor, if the temporary labor is also not bad. Therefore, the auditor can not stick to the old ways, rigidly holding the box. Otherwise, the audit conclusions can not be realistic, and will even bring a certain misleading effect on business decisions.

4. "Anatomy of a sparrow" audit method and "high level" audit method. Emphasis on management audit to carry out in-depth analysis and dissection, not that the management audit to be obsessed with the "microcosm" in the exploration. In-depth understanding of the "microcosm", the auditor must also "jump" out, standing at a certain height, the "micro" to summarize, refine, so that it rises to a certain level. ...... >>

Question 8: What are the classifications of auditing? There are many kinds of audit classification, according to the scope of the audited object, the content or the purpose of the audit to be classified, or according to the audit of different ways to be classified, different perspectives, classification is also different:

First, according to the content of the audit to be categorized

1, financial audit. It refers to the audit organization of the state organs, enterprises and institutions of the financial, financial income and expenditure activities and reflect their economic activities of the accounting information for the audit.

2, economic efficiency audit. It refers to the auditing organization of the audited unit or project economic activities, including financial, financial income and expenditure activities, the effectiveness of the review.

3, financial law and discipline audit. It refers to the state audit institutions and internal audit departments for serious violations of financial law and discipline of the behavior of the special audit.

Second, according to the audit subject to be categorized

1, the state audit. Also known as *** audit. It refers to the audit carried out by the national audit institutions.

2, social audit. Also known as certified public accountant audit.

3, internal audit. Also known as departmental and unit audit. It refers to the department's internal audit independent of the accounting department outside the full-time audit organization.

Third, according to the audit time classification

1, prior audit. It refers to the audit of economic operations before the occurrence of the audit. That is, the preparation of plans and budgets, as well as the feasibility of capital projects and fixed asset investment decisions, such as the audit.

2, the audit. Refers to the plan, budget or investment projects in the implementation process of the economic activities that occur in the audit.

3, after the audit. Refers to the audit of economic operations after the occurrence of the audit.

Fourth, the above is a common and basic classification of audit, but also can be categorized according to the following criteria:

1, the audit is categorized according to its scope, which can be divided into all the audit and local audit.

2, audit according to whether it has a definite time classification, can be divided into regular audit and irregular audit.

3, audit according to its implementation of the location classification, can be divided into reporting audit and local audit.

4, audit according to whether it is subject to legal classification, can be divided into statutory audit and non-statutory audit.

5, in accordance with the audit of the start of whether to notify the audited unit classification, can be divided into notification of the audit and notification of the audit.

6, in accordance with the accounting reporting period for audit classification, can be divided into the interim audit and period audit.

Question 9: What should be included in the audit program Audit procedures A. Meaning: audit procedures for the completion of the audit of the detailed steps required for the audit process, but also pointed out that the location of evidence in the audit trail. Audit procedures for the auditor, like a map to the traveler, without audit procedures, the auditor may check the wrong direction or not use the fastest and best checking methods, resulting in a waste of time and cost.　Second, the type of audit procedures (8 kinds) (a) check records or documents Check records or documents refers to the certified public accountant to the audited unit internally or externally generated, in paper, electronic or other media form of records or documents to review. The purpose of inspecting records or documents is to validate the information contained or to be contained in the financial statements.　(ii) Inspection of Tangible Assets Inspection of tangible assets refers to the CPA's review of physical assets. The inspection of tangible assets procedure applies mainly to inventories and cash, but also to marketable securities, notes receivable and fixed assets. Inspection of tangible assets may provide reliable audit evidence of their existence, but may not necessarily provide reliable audit evidence of rights and obligations or valuation determinations.　(iii) Observation Observation means that the CPA looks at the activities being performed or the procedures being performed by the relevant persons. For example, observation of inventory counts or control activities performed by a client.　The audit evidence provided by observation is limited to the point in time when the observation occurs, and when the relevant persons are known to be observed, the activities or procedures performed by the relevant persons may be different from their daily practice, thus affecting the CPA's understanding of the true situation. Therefore, it is necessary for the CPA to obtain other types of supporting evidence.　(iv) Inquiries Inquiries are the process by which the CPA obtains financial and non-financial information, either in writing or orally, from knowledgeable persons within or outside the audited entity and evaluates the responses. The inquiry itself is not sufficient to detect the existence of material misstatement at the determination level, nor is it sufficient to test the effectiveness of the operation of internal control, the certified public accountant should also implement other audit procedures to obtain sufficient and appropriate audit evidence.　(v) Correspondence Correspondence refers to the process of obtaining and evaluating audit evidence by means of statements directly from third parties about relevant information and existing conditions in order to obtain information about items affecting the financial statements or related disclosure determinations by the certified public accountant. Examples include correspondence on accounts receivable balances or bank deposits. The reliability of evidence obtained through correspondence is high, and therefore, correspondence is an important procedure that is highly regarded and frequently used.　(vi) Recalculation Recalculation refers to the verification of the accuracy of data calculations in records or documents by the CPA, either manually or using computer-assisted auditing techniques. Recalculations usually include calculating the total amount of sales invoices and inventories, adding up journals and ledgers, checking the calculation of depreciation expense and prepaid expenses, and checking the calculation of taxable amounts.　(vii) Re-execution Re-execution refers to the CPA's re-execution of procedures or controls that are part of the auditee's internal controls, either manually or by using computer-assisted auditing techniques, independently. For example, the CPA utilizes the audited entity's bank deposit journals and bank statements to re-compile the bank deposit balance reconciliation statement and compare it with the bank deposit balance reconciliation statement prepared by the audited entity.　(viii) Analytical procedures Analytical procedures refer to the CPA's evaluation of financial information by examining the inherent relationships between different financial data and between financial and non-financial data. Analytical procedures also include investigating fluctuations and relationships identified that are inconsistent with other relevant information or that deviate significantly from expected data.

Question 10: the specific methods of audit methods The specific methods of audit, mainly the collection of audit evidence, can be broadly categorized into the method of reviewing written information and confirming the method of objective things, in addition to audit investigation methods. Review of written information according to the review of written information technology, can be divided into checking method, review method, review algorithm, comparative method, analytical method; according to the order of the review of information is divided into reverse checking method and smooth checking method; according to the scope of the review of information is divided into the detailed checking method and sampling method. 1. checking method checking method is the accounting records and their related information in more than two of the same value or relevant data against each other to verify whether the content of the same, whether the calculation is correct audit method, the audit method. The purpose of the audit method is to ascertain whether the evidence, accounts and tables are consistent with each other, and to confirm that the financial position and financial results of the audited unit are true, correct and legal. Generally to check between the following information: a. First, the original documents and the relevant original documents, original documents and summarized original documents, vouchers and summarized vouchers (or a summary of accounts). The content of the check is attached or related to the number of original documents is complete, the date, business, content, amount of accounting vouchers with the accounting subjects and amount of whether they are consistent with the original documents, accounting vouchers with the summary of accounting vouchers between the contents of the consistency. b. The second is the vouchers and books of accounts. Check the date of the vouchers, accounting subjects, detailed accounts, the amount of records with the books of account whether the content is consistent; summary vouchers (or summary statement) and the general ledger account, the amount, the direction of whether it is consistent. c. Third, the ledger with the general ledger. Mainly check whether the opening balance, the current period's incidence and the closing balance are consistent. d. Fourth, the books and statements. Based on the general ledger or ledger of the closing balance or the current period as the basis for the current period, check the account records with the relevant statement of the consistency of the project. e. Fifth is the statement with the statement. Check whether the statements are prepared in accordance with the requirements of the system, and whether the corresponding relationship between the statements is correct. If errors or doubts are found in the reconciliation, the reasons should be identified in a timely manner. In particular, it should be noted that the information used as evidence in the reconciliation method must be true and correct, otherwise the reconciliation is meaningless. When there is a lack of basis, cross-checking data should be at least two different sources, and to make their reconciliation consistent. 2. review method review method is the vouchers, books and statements, as well as business decisions, plans, budgets, contracts and other documents and information on the content of the detailed reading and review, in order to check the economic operations whether the laws and regulations, the economic information is true and correct, and whether it is in line with the requirements of the accounting standards. The review method is mainly to check the evidence, accounts, tables and other accounting information. a. One is to review the original documents, bookkeeping vouchers. Both from the form and technical review, but also from the content of the review. The former is mainly to review whether the vouchers are complete and correct, such as the date, summary, amount, capitalization, signature, etc. should be filled out whether complete, with or without alteration; the latter is mainly to review whether the economic operations in line with the relevant procedures, whether there is a violation of the financial and economic discipline, financial and accounting system regulations, or even engage in illegal business activities, etc. b. Second, review the records of the economic information in line with the relevant principles and principles. For example, whether the use of accounts in the accounting books is correct, whether the account correspondence is normal and reasonable; whether the accounting statements are prepared in accordance with the provisions of the system, whether the relationship between the statements should be correct, etc. c. Thirdly, whether there are any abnormalities in the records of the economic information. Such as the books of account whether there is alteration, scraping, gouging, forgery, as well as non-compliance with the provisions of the writing and change; statement of the project there is no abnormal increase or decrease in the phenomenon of change. 3. review algorithm review algorithms is the vouchers, books and statements, as well as budgets, plans, analyses, and other written information to re-review, checking and accounting of a method. This method is included in the reconciliation method. Review of the main aspects of the calculation are: First, the original vouchers in the unit price multiplied by the number of products, subtotals, totals, etc., the second is the total of the detailed amount of vouchers, books of account in the amount of each page of the columns of the sub-total, total, balance, the fourth is the statement of the relevant items in the sub-total, total, total and other calculations, and five is the budget, plan, analysis of the relevant data. Review method is generally used in conjunction with the review method, so as to improve the insurance coefficient of the audit. 4. Comparative method is to compare and analyze the amount of the same audited items through the actual and the plan, the current period and the previous period, the enterprise and similar enterprises to check whether there are any abnormalities and suspicious problems in order to follow up and trace the clues to obtain audit evidence. Such as the current period compared to the relevant projects (such as profits did not synchronize with the growth of product sales revenue), to be audited by the project compared with other units of the same project (such as the level of working capital turnover with the advanced enterprises than), can illustrate the situation and find problems. Comparison method can be divided into the absolute number of comparisons and relative number of comparisons, the purpose of the two exist only one, is to better audit and check. 5. analytical method of analysis is through the decomposition of the contents of the project being audited, in order to reveal the essence and ...... >>

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