Auditing: Principles and Techniques

Chapter 3

Techniques and Procedures of Auditing

CHAPTER OUTLINE

3.1 Introduction

3.2 Preparatory Steps before Commencement of Audit

3.3 Preparation by the Auditor

3.4 Principles and Techniques of Acting

3.5 Procedures Followed in Course of Audit

3.1 INTRODUCTION

An auditor must ensure that he fully understands the enterprise with which he is dealing before he determines his basic approach to an audit. He must familiarise himself with its organisation and visit the location at which it operates. He should have a detailed knowledge of its products or services. He must ensure that he has fully grasped any technicalities peculiar to the business. Only then he will be in a position to fully comprehend and identify the transactions which are being ...