Fundamentals of Audititng

Chapter 3

Techniques and Procedures of Auditing

3.1 INTRODUCTION

In finalising the audit programme and selecting the techniques and procedures to be applied to an audit, he must ensure that he fully understand the enterprise with which he is dealing. He must familiarise himself with its organisations and visit the locations in which they operate. He should comprehend the nature of the business and have a detailed knowledge of its products or services. He must ensure that he has fully grasped all the technicalities peculiar to the business. Only then he will be in a position fully to comprehend and identify the transactions which are being recorded in the accounting records, and in relation to which the internal controls will be operating.