Techniques of Auditing
By Techniques of auditing, we mean the methods or procedures adopted by an auditor in checking the accounts. The technique of auditing is different with different business auditors according to their experience and insight in the work of auditing. If his experience shows that the technique or procedure adopted by him in the past was not satisfactory, he may adopt a different technique. But the principles of auditing will remain the same and he cannot make any departure from them.
Thus, technique are basic methods by which the auditor collects and evaluates evidences. While checking different accounts, the auditor has to adopt a certain method or procedure of technique. If one technique is not found satisfactory, he may adopt and try other technique. The basic methods by which the auditor collects evidences are known as techniques of auditing. These include Routine checking, Test Checking, Vouching and Valuation, etc.
Some of the important techniques of auditing are as under:
1.) Physical examination.
2.) Examination of documents and their comparison with record.
3.) Inquiry
4.) Examination of subsidiary statements.
5.) Analysis of financial statements.
6.) Flow charting.
7.) Re-computation.
8.) Looking at all parts successively.
9.) Correlation with related information.
10.) Techniques for testing electronic data.
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