Question

Hello - I need assistance with this problem please:

Which audit procedure involves selecting a transaction and comparing the details of that transaction to a source document? For example, comparing the purchase of a fixed asset to the supporting purchase order, invoice and shipping documents.  

		Vouching
		Analytical procedures
		Tracing
		Scanning

Answer 1

Audit Documentation are written record of the basis for the auditor’s conclusion that provides the support for the auditors representation whether those representations are contained in the auditor’s report or otherwise. The objective is to improve audit quality and enhance public confidence.

So the audit procedure that involves selecting a transaction and comparing the details of that transaction to source document is done through inspection of records and documents which can be. Done in different ways such as Vouhing,Tracing and Scanning.

Where as analytical procedures can be performed throughout the phases of audit. It can be performed during the planning stage, evidence collection phase and during completion phase.The standard required the analytical procedure to be performed during the planning and the completion phase. It is optional to the auditor otherwise. The objective of analytical procedure during planning phase is attention directly because they are going to find out the risk assessment. And then during completion phase its required as you have all information it helps you find out if it all makes complete sense or not and gives justice to the audit procedure.

Your valuable feedback is requested !