The 12 Audit Procedures - CPA Exam | Auditing Course

Discussing the audit procedures and the types of evidence, including physical examination, confirmation, inspection, analytical procedures, inquiries, and observation.

Explaining the steps required to collect audit evidence, highlighting the importance of clear instructions for all team members involved in the audit process.

Providing an example of using inspection as a method to collect evidence by examining documents or records to confirm accuracy and alignment with client's information.

Detailing the process of conducting analytical procedures to detect unusual transactions or amounts by analyzing written information and financial data.

Explaining the concept of recomputing as an audit evidence collection method to verify the accuracy of client calculations and ensure the correctness of financial information.

Discussing the importance of tracking information sources in auditing, such as tracing amounts from financial documents to confirm accuracy and ensure data integrity.

Explaining the process of comparing data from different sources and cross-referencing information, highlighting the need for clear instructions and thorough examination of records.

Explaining the concept of physical examination as an evidence collection method, involving the counting and examination of physical assets to verify their existence and condition.

Describing how observation of processes, such as inventory counting or cash handling, can serve as audit evidence to validate procedures and ensure compliance with standards.

Defining inquiries as a form of evidence collection by asking questions to verify balances or transactions, although not considered the strongest type of evidence in auditing practice.

Explaining the importance of authenticating documents as evidence by verifying the accuracy and legitimacy of transactions through the examination of supporting documents like vendor invoices and receiving reports.