 Any information used by the auditor to
determine whether the information
being audited is stated in accordance
with the established criteria.
 Which audit procedures to use?
 What sample size to select for a given procedure?
 Which items to select from the population?
 When to perform the procedures?
 Is the detailed instruction that
explains the audit evidence to be
obtained during the audit.
 An audit procedure is the detailed
instruction for the collection of a
type of audit evidence that is to
obtained.
 They are the instructions to be
followed in accumulating evidence,
they must worded carefully to make
sure the instructions are clear.
 Once
an
audit
procedure
is
selected, auditors can vary the
sample size from one to all items in
the population being tested.
 List of audit procedures for an
audit area or an entire audit, the
audit program always includes
audit procedures and may also
include sample size, items to select,
and timing of the tests.
 An audit program for AR is a list
of audit procedures that will be
used to audit accounts receivables
for a given client, the audit
procedures, sample size, items to
select and timing should be
included in the audit program.
 The principal record of auditing
procedures
applied,
evidence
obtained, and conclusions reached
by the auditors in the engagement.
 It involves the auditor’s examination of
documents that have been prepared
and
used
within
the
client’s
organization and are retained without
ever going to an outside party.
 It
involves
the
auditor’s
examination of documents that
have in the hands of someone
outside the client’s organization.
Internal
Documentation
External
Documentation
It is prepared and
used within the client
organization without
ever going to an
outside party
Either originated with an
outside party or was an
Internal document that
went to an outside party
and is now either in the
hands of the client or is
readily accessible
Internal
Documentation
External
Documentation
• Check request form • Vendor’s invoice
• Receiving report
• Cancelled check
• Payroll time record • Cancelled note
• adjusting Journal
entry