What are the audit techniques?

The techniques of audit they are methods of investigation and practical test that an auditor uses to acquire the information and verification that he needs to provide a professional opinion on the matter.

The audit processes, refers to the set of investigation techniques that are applied in a group of circumstances or facts related to the various financial statements and to the operations carried out by a company business.

This indicates that these techniques are favorable work tools that the auditor uses in conjunction with the procedures that it executes, which has been a combination that is carried out on the basis of these tools in order to make a study specific.

Since these procedures are groupings audit techniques that are applied in the specific study of an action or operation carried out by the company to be investigated, it is dishonest to make a classification of processes, because the experience and criteria of the auditor is the one who determines the techniques that belong to the process in each specific case.

How does the auditor work with auditing techniques?

The auditor and the participants of his highly experienced team use the strategies they deem necessary to carry out the audit process. This process is developed in the knowledge of the audited company and the professional experience that allows auditors to indicate the procedures to be applied for each case that arises during the process.

During the development of the audit process, it is necessary to apply some specific item studies, as well as the total analysis of the various activities of the company. It is important to bear in mind that the application of processes determines the observation and response that is acquired for the final analysis of the study carried out.

Classification of audit techniques

The audit techniques are practical investigative and testing methods that a professional accountant uses to be able to check the veracity of financial information to help you interpret and express your opinion professional. Within these techniques there is a classification such as the following:

• The observation: It secretly confirms some circumstances or facts that recognize the way in which the participants of a company apply the established processes. It is a technique that can be applied in all phases of the audit.
• The conciliation: It consists of allowing two sets of related figures, whether separate or independent, to have agreement.
• Checking: Refers to the study of cases or facts, which can facilitate the equality or difference that occurs when the study is carried out, to later determine the similarities.
• The verification: This is the statement that is obtained in writing through the different sources of the company during the investigation. Within the confirmation there are two types that are:
• Positive: applies if the balance is significant directly when the balance is sent and a response is requested from the company with regarding the conformity or non-conformity and indirectly when the request is made to the company that facilitates the balance.
• Negative: When the balance is sent to the company and a response is required in case it is dissatisfied. This method is used depending on the situation that arises or when the balance is not significant despite having a high number of customers.
• Selective research: This is a small visual investigation, which is carried out in order to quickly separate the operations that lack normality.
• Checking: Basically it is the verification of the facts that is carried out with the provision of verified documents. During the review of expenditure or disbursement documents, the auditor should take into account the authority, authenticity and legality of the document.
• Legitimation: This is in the written statement of the officials or employees of the evaluated company. This is done to clarify the facts, however, it is necessary to take into account that a statement does not confirm the evidence, therefore, sometimes they only help as a means of looking for more evidence such as:
• The authority: It is all the expense or disbursement that must be authorized by the people who have the authority to do so.
• The authenticity of the document: Refers to the fact that every document has to be authentic.
• Legality: Indicates that the operations must be supported by their own documents that include the legal requirements necessary to verify the payment.
• The property: It is the expense or disbursement that is directly related to the evaluated company and not for the use of third parties.
• The search: Consists of monitoring a transaction from one point to another during the development of the accounting process and thus determining an adequate record.
• The calculation: It is the exact verification of the calculation of the operations carried out by the company.
• Analysis: This is the classification of the elements that make up an account. This analysis can be applied in two types of accounts, the balance analysis that when separated has a better study and the movement analysis that studies the credits or charges of an account that facilitates the accumulation of income or expenses.
• Totalization: It is the exact verification of the totals and sub totals.
• The physical count: consists of physically inspecting all goods, documents and securities in order to demonstrate its authenticity.

To know and have the knowledge of when to apply the different audit techniquesIt should be taken into account that this is a very important function that is performed by a professional auditor.

In this way, the audit it will be much more effective during its development and in this way the correct continuity of the company is guaranteed. This technique has diversified and offers a wide number of possibilities, thanks to the advancement of technology and the legal evolution of this process.