Audit Procedures

Question 1

Inspection (of tangible assets)

Answer 1

Inspection of tangible assets consists of physical examination of the assets.

Question 2

Observation

Answer 2

Observation consists of looking at a process or procedure being performed.

Question 3

Inspection (of records or documents)

Answer 3

Inspection of records or documents consists of examining records or documents.

Question 4

Inquiry

Answer 4

Inquiry consists of seeking information of knowledgeable persons, both inside or outside the entity.

Question 5

Recalculation

Answer 5

Recalculation consists of checking the mathematical accuracy of documents or records.

Question 6

Reperformance

Answer 6

Reperformance is the auditor’s independent execution of procedures or controls that were originally performed as part of the entity’s internal control.

Question 7

Analytical procedures

Answer 7

Analytical procedures consist of evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data.