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We know the Audit procs are
Analytical procs, enquiry, Inspection, observation and recalculation/re/reperformance
for each audit procedure below, i want to match the type of procs used:
1. auditor will agree the valuation of PPE in FS to the valuation report – INSPECTION
2. auditor will agree to the assumptions made in the valuation report for their resonableness – INSPECTION
is this correct?
the above is not a question in any text but am trying to figure out if my thinking is correct
thanks for ur patience
1 – Fine
2 – I don’t think you can assess the basis of valutaion by assessment. Obviously, you can see the valuation report (inspection), but an element of reperformance and enquiry are needed to test if that report is reasonable.
is my thinking or process correct? ie trying to classify the procedures and the assertion it is attempting to test?
You should think what assertions need to be tested for a particular figure then design a procedure to do that. Eg ownership of a building: inspect land registry (in UK).
When describing a procedure you would carry out, always state which assertion(s) it is providing evidence for.
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