AUDIT PROCEDURES

The answer would depend on the scenario, but in genera; audit procedures consist of:

Analytical procedures
Enquiry and confirmation
Inspection
Observation
Recalculation and reperformance.

Analytical procedures are;

1 Ratio analysis eg compare receivable collection period form one year to the next
2 Trend analysis eg why have sales suddenly jumped
3 Proof in total: this year’s wages should be approximately last years x (1 +inflation) x number of employees this year/number last year.

Odd movements or results require investigation. Expected/normal results need less work.

Regarding the audit procedures you mentioned gromit, i suppose inquiry would also be an underlying procedure. Essentially when testing say controls, we would inquire to management on what the control activites are and how their design intends to achieve the control objective. From then on we would observe/inspect that there are no control weakness.