Ch 3Audit Procedure — Class 12 Commercial Law and Preliminaries of Auditing, concept-first.

Before an auditor examines a single voucher, a great deal of groundwork has to be done — understanding the business, planning the work, and creating a written record of everything the audit finds.

An auditor never simply walks in and starts checking vouchers. Before the actual examination of accounts begins, a new auditor (one taking up an audit engagement for the first time, or for a new clien…

Audit Planning is the process by which the auditor develops an overall strategy and a detailed approach for the expected conduct and scope of the audit, based on the understanding gathered during the…

Definition. An Audit Programme is a written scheme, prepared in advance by the auditor, that lays down in detail the exact audit procedures to be applied to a particular business, and specifies which…

Definition. An Audit Notebook is a diary or register maintained by the audit staff (typically the audit assistants/clerks) during the course of an audit, in which they record their day-to-day observat…

Definition. Audit Working Papers are the complete set of documents — prepared by the auditor and the audit team, or obtained from the client and others — that record the audit evidence gathered, the p…

Definition. An Audit File is the physical folder, binder, or electronic repository in which all the working papers relating to a particular audit engagement are organised and stored.

Definition. An Audit Memorandum is a written note prepared by the auditor (or a senior member of the audit team) summarising the significant matters, understandings, instructions, and decisions releva…

Audit Programme, Audit Notebook, Audit Working Papers, Audit File, and Audit Memorandum sound similar and are frequently confused in exams, because all five are documents connected with recording and…