Eight basic auditing methods

Eight basic auditing methods are opportunity cost method, asset value method and human capital method.

1, opportunity cost method.

The development, utilization and protection of environmental resources are equivalent to the choice of multiple mutually exclusive schemes. Limited resources determine that choosing one form means giving up other forms, and the greatest economic benefit of giving up the scheme is the opportunity cost of the selected scheme. It is suitable for the measurement of economic losses caused by water shortage, waste and occupation.

2. Asset value method.

The difference of environmental conditions can be reflected by land price or house price, and the value of environmental resources can be calculated accordingly. Regression analysis is often used to calculate and measure the contribution of environmental conditions to land price, which can be regarded as the value of environmental resources. This method is suitable for measuring the green benefits of forests and lawns around homestead.

3. Human capital law.

It is specially used to evaluate and measure the economic losses caused by environmental pollution to human health. The law divides human health losses caused by environmental pollution into direct economic losses such as medical expenses and funeral expenses and indirect economic losses such as nursing expenses. It is suitable for environmental pollution measurement of heavily polluting enterprises that do great harm to people.

Selection of audit methods:

1, according to the specific circumstances of the audited object and the audited object, select the audit method.

Generally speaking, when conducting financial audit, audit methods such as audit, review, inspection and confirmation are mainly adopted. When conducting economic benefit audit, we should not only use the general methods of financial audit, but also use various analytical methods and modern management science, such as economic activity analysis, technical and economic analysis, decision analysis and mathematical analysis.

2, according to the quality of auditors to choose audit methods.

As a highly technical job, audit requires auditors to have corresponding professional knowledge and expertise in other disciplines, as well as rich practical experience, keen observation and professional judgment. Compared with other institutions, audit professionals have no "foresight" and it is difficult to truly make every professional auditor a "generalist".

3. Choose audit methods according to different audit types.

Generally speaking, different types of audits or different audit projects of the same type, or the same audit project, may need to obtain a variety of evidence through different channels. Different methods can obtain different evidence. For example, the acquisition of physical evidence must use the list method, and the external evidence of the third party should use the confirmation method or the inquiry method.