Question

List two specific audit procedures of ANZ, and explain in detail.

Answer 1

Audit procedures :-

audit procedures of the processes, techniques and methods that auditors perform to obtain audit evidence which enable them to make a conclusion on the set audit objective and express their opinion. Sometimes we call audit procedures as audit programs.

These two terms refer to the same thing.

altis normally prepare audit procedures at the planning stage once the identified audit objective, audit scope, audit approach and audit risk.

auditors design audit procedures to detect all kinds of forests that they identified and ensuring that the required audit evidence is sufficient sufficient and appropriate.

Two specific audit procedure of ANZ are :-

Analytical review and inspection

1. Analytical review :- analytical reviews not the procedure that uses to obtain audit evidence, but it is the procedure used to assess the unusual transactions for events as the principal or basic to perform other procedures

for example, when auditors find there is an unusual transactions or event as the result of using analytical review, then the auditors will use other procedures that are applicable to obtain evidence

delete procedure could be used for the types of transactions for events that occur regularly or have a connection with other transactions or events

example, we can use analytical procedure to assess reasonableness of depreciation that records and financial statements. the main reason is the depreciation expenses are calculated systematically and occur regularly.

in simple words we can say the Undertaker interview is a study of financial and non financial data of an organisation to get appropriate audit evidence.

2. Inspection :-

Inspection refers to verification or vouching documents. this is one of the most important and it can be 60% of audit work involved with the inspection of documents.

example, the auditor examine the service rendered invoices that record in financial reports.

the auditor might examine whether the invoice issued by the client is really based on the services that rendered and the services that received is actually the one of the company makes an order.

the auditor also examine the payment voucher against the authority that approves the payment vouchers

The ultimate also inspect the supporting documents recording the inventory movement and total services rendered by the organisation for a particular period or a particular accounting period or time period of the audit. This is including the documents related to you getting inputs and outputs.

Other audit procedures used in the the performance of audit of an organisation are :-

1. Recalculation

2. Observation

3. Inquiry

These all the information required to solve the above given question.

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I hope, all the above given information and explanations are useful and helpful to you.

Thank you.