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Hello Mike,
I am reading the answer on the planned audit procedures in relation to Bridgetown property development. One of the procedures is to “examine the customer-signed contract to verify the fixed price, and also to reveal any penalty clauses relating to late completion.”
My questions are as follows:
1. Why the procedure start with “examine” instead of “obtain and examine”? How can the auditor examine without obtaining the document first?
2. Can Examine, Inspect and Review be used interchangeably? For example, Examine/Inspect/Review the customer-signed contract to verify the fixed price (Does it mean the same?)
3. Can Verify and Confirm be used interchangeably? For example, examine the customer-signed contract to Verify/Confirm the fixed price (Does it mean the same?)
Thank you.
Regards,
MarthewIf you think about it, it’s a bit difficult to examine a document without first having gained access to that document – either by obtaining a copy or simply by being given access to read without being given a copy
Clearly the first option is much preferable to the second but my point is that it IS possible to examine without having obtained a copy
Further, in the context of an auditing question, surely it’s implicit that a copy will be obtained
So, on this point, I DO agree with you … but I doubt very much that the omission of “Obtain” is going to cost you any marks
The same comment applies to the points lower down in the suggested solution (“Inspect the list of provisions” and “Inspect the report from the architect”
As for “Examine, Inspect and Review” and “Verify and Confirm” I believe that these expressions are sufficiently synonymous to be capable of being used interchangeably
A dictionary definition of “verify” includes the verb “confirm” and the dictionary definition of “examine” includes the verb “inspect”
“Review” is defined as “To look at or examine …”
Does that help?
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