What are the methods of audit evidence

Concept: Shun Cha method refers to the audit of the forensic order and reflect the economic operations of the formation of accounting information consistent with the process of the method.

Advantages: the audit process is comprehensive and detailed, generally speaking, it is not easy to miss the wrong things, so the audit quality is higher; at the same time, because of the simplicity of the method, so it is easy to grasp.

Disadvantages: everything is not detailed, do not focus, mechanical complexity, workload, is not conducive to improving the efficiency of the audit.

Scope of application: applicable to the smaller business scale, less accounting information, there are more problems in the audited unit.

Reverse checking method:

Concept: Reverse checking method refers to the audit of the order of evidence and reflect the economic operations of the formation of accounting information in the process of the opposite method.

Advantages: from the audited matters in general to grasp the focus, in the discovery of problems based on a clear direction of attack, purposeful, targeted is relatively strong; due to the focus, and therefore can save manpower and time to improve the efficiency of the audit.

Disadvantages: Because the use of the reverse search method generally does not require a comprehensive and detailed review of the audited matters, and therefore may miss important matters of error and malpractice. In addition, technically, the reverse method is more complex than the downward method, and it is more difficult to master.

Scope of application: Applicable to large-scale business, internal control system is more sound, the management of a better foundation for the audited unit.

Detailed investigation method:

Concept: Detailed investigation method refers to the audited economic operations of a certain type of accounting information to carry out a comprehensive and detailed review of all the content without omission method.

Advantages: in the scale of the review of accounting information, it is the entire unit or a certain type of business period of accounting records and vouchers of all the information to verify one by one. Both to check the vouchers, books, statements, but also to review the relevant economic information and analyze it, so the review can comprehensively expose the wrongdoing in the accounting work, can be more comprehensive to identify the problem and make accurate audit conclusions.

Disadvantages: because of the review of all the accounts and vouchers, and therefore must arrange for sufficient personnel and time to complete the audit task, the workload is large, time-consuming and laborious, the audit cost is relatively high.

Scope of application: suitable for audited units with relatively simple economic operations. Audited units with relatively chaotic internal control and audited units that may have significant violations of financial laws and regulations can be considered for the detailed investigation method.

Sampling method:

Concept: sampling method refers to the part of the audited unit's economic operations and accounting information, and based on the results of the inspection of the overall status of the method of inference.

Advantages: the sampling method can make the auditor get rid of monotonous and complicated work, greatly improve the efficiency of the audit work, save audit resources, and can receive twice the result with half the effort.

Disadvantages: Because the sampling method is to part of the information checking results to infer the overall situation, and therefore may have an impact on the quality of the audit. Especially for those infrequent wrongdoing, the use of this method has certain limitations.

Scope of application: the scope of application is relatively broad, where the larger, more economic operations, sound and effective internal control, accounting basics of work is better, the organization of a sound unit of audit, can be used to sample the method.