How to understand auditing methods?

Audit method refers to the general name of the ways, means and techniques used by auditors to exercise audit functions, complete audit tasks and achieve audit objectives. Audit methods run through the whole audit process, not just a certain audit stage or a few links. There are problems in the application of audit methods from making audit plans to issuing audit opinions, making audit decisions according to law and finally establishing audit files.

Audit work is not non-standard, and the audit method has its own system, and its main contents should include the following aspects:

Audit planning method

Audit planning method refers to various measures and means adopted in reasonably organizing and arranging all audit activities or specific audit projects. Its purpose is to determine the audit objectives and rationally allocate various audit resources, so as to ensure that the audit work is carried out economically and effectively. Its main contents include planning method, program determination method and scheme design method. Planning methods, involving how to design the overall audit objectives and long-term and short-term arrangements of audit activities; The procedure determination method mainly refers to the design of general audit steps, including the specific arrangements for audit preparation, implementation and completion; The scheme design method involves the key points of specific audit projects, audit sequence, audit time, division of labor and other deployment issues.

Audit implementation method

Audit implementation method refers to all kinds of procedures, measures and means adopted in the specific audit of the audited entity or the audited project. Its purpose is to confirm the audit objectives and collect sufficient and effective evidence to ensure that the audit conclusions and decisions have a reliable basis. Audit implementation method is the most basic method of audit, which includes both certain procedures and various technical means, including audit inspection method, audit record method, audit evaluation method and audit report method.

Audit and inspection methods refer to various methods and techniques used in collecting audit evidence. Its main purpose is to find out the truth of the matter and confirm the audited problems. It can be divided into two categories: system inspection method and audit technology. System inspection method is based on the system point of view to determine the audit order and scope of the audited materials or activities. For example, it includes sequential inspection, reverse inspection and direct inspection, as well as detailed inspection, spot check and re-recording. If the systematic inspection method is understood as determining the order and scope of collecting audit evidence, then the audit technical method is the specific measures and means to collect audit evidence. According to the auditing tools and their applicable information systems, auditing techniques can be divided into manual auditing techniques and computer auditing techniques. Manual audit technology, also known as general audit technology, refers to various technologies that adopt manual audit or are suitable for manual operation of information systems; According to its scope of application, it can be divided into basic audit technology and auxiliary audit technology. Basic audit technology refers to the technology used to collect direct audit evidence, such as review, inspection, inventory and other technologies; Auxiliary audit technology is used to collect audit clues or indirect evidence, such as inquiry, analysis, reasoning and other technologies. Computer auditing techniques, some of which are called special auditing techniques, mainly refer to the use of computer auditing or various auditing techniques suitable for computerized information systems, such as analog data, reprocessing and program checking.

Audit record method refers to various methods of designing, filling in and reviewing audit record documents. Audit records help to comprehensively and systematically reflect the audit process and results, provide sufficient basis for the formation of audit conclusions and decisions, provide complete information for the preparation of audit reports, and help to determine the appropriateness of auditors' audit behavior and their scope of responsibilities. Audit records can be divided into auditor diaries and audit working papers.

Audit evaluation method refers to the method of judging right and wrong according to the ascertained facts and audit standards. Through audit evaluation, it can be determined whether the audited data is true, correct and credible, and whether the audited economic business and economic activities are legal, reasonable and effective. Audit evaluation methods can be divided into general evaluation methods and specific evaluation methods according to the scope of application: general evaluation methods refer to procedures and technologies suitable for evaluating various audited projects; Specific evaluation methods refer to the evaluation points and requirements that are only applicable to certain specific objects.

Audit report method refers to the method of designing, compiling and reviewing audit reports. The audit report method is conducive to comprehensively and emphatically reflecting the process and results of various audit activities, facilitating the audit entrusting unit or audit institution to make correct conclusions and handling decisions on the audited unit or project, and facilitating the audited unit and relevant departments to understand the audit results and clarify their respective responsibilities.

Audit management method

Audit management method refers to various measures and means to control and adjust the activities and audit process of audit subjects, with the purpose of improving audit quality and efficiency and ensuring the effective use of various audit resources. Due to the variability of audit scope, its management contents and means are also varied, among which the most important is the management of audit subject, audit quality and audit information. The management method of audit subject mainly refers to the management methods of audit institutions and auditors, such as organization setting, staffing, post responsibility, personnel training and assessment. Audit quality management methods mainly refer to management methods such as quality standard formulation, quality control and assessment, such as quality target management and audit process monitoring. Its purpose is to restrict all kinds of negative factors affecting quality, so as to improve audit quality and avoid or reduce audit risks. Audit information management methods refer to various measures and means to collect, process, store and apply audit information, such as general methods of information management, audit statistics methods and audit file management methods. Its purpose is to ensure the effective development and utilization of audit information resources, so as to facilitate the communication of audit situation and better play the role of audit in macro management.

China's auditing standards stipulate that auditors can use detailed investigation, internal control evaluation, sampling audit, calculation, analytical review, inquiry, supervision and computer-aided audit to check the bank account and accounting data of the audited entity, consult documents and materials related to audit matters, check cash, physical objects and securities, and obtain audit evidence.