Question

Briefly describe the six procedures performed during fieldwork

Answer 1

Field work is the second phase of auditing. In this phase, the physical verification process is conducted by the auditing team through their presence on the site of performance of audit.

The six procedures for field audit are :

1. Supporting Documents : the original receipts of expenses are verified with the amount of expenses shown in the documents of accounting. Vouchers, Bills, Commission paid and quantity of material consumed etc are also reviewed.
2. Discussion with department personals : explanatory statements are taken from the employees/management for further verification of expenses incurred etc.
3. Analysis : the actual expenses and budgeted expenses are both analysed to check frauds/deviations and they are compared with standard expenses to be incurred for performance of a such activities.
4. Exceptions identification : the audit team also performs various audit procedures to identify an "Exception" occurred in activities performed by entirety.
5. Recommendation : the audit team after analysis and performance of audit suggests various procedures, controls and methods to improve the quality of task performed and to make it cost efficient and fraud free.
6. Audit report/comments : the auditor of an entity at the end of field work for prepares an audit report of "material findings" during the audit and submits it to those charged with governance/management.