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Audit procedures: tests of controls, tests of details and analytics

AUD Chapter 21 · Area III · Blueprint III.D.1–2

This chapter is the auditor's toolbox. The Blueprint lists eleven tasks here, more than any other topic, and several are at the analysis and evaluation levels: analyze interview answers, analyze exceptions, build an expectation and investigate the difference. Simulations in this area give you a schedule and ask what the numbers should have been.

In this chapter

1. Seven tools
2. Observation and inspection: strengths and limits
3. Inquiry: asking well and listening well
4. Testing controls and analyzing exceptions
5. Tests of details and analyzing exceptions
6. Testing cash
7. Testing receivables, revenue and inventory
8. Testing payables, fixed assets, debt, equity and payroll
9. Analytical procedures: three uses
10. The four steps of a substantive analytical procedure

This chapter has 10 lessons, 50 practice MCQs with explanations and 30 simulations, plus flashcards and a recall sheet.

What this chapter covers

• Observation, inspection, recalculation, reperformance and inquiry
• interview follow-up
• analysing exceptions
• substantive and final analytical procedures

Chapter 20: Audit sampling · Chapter 22: External confirmations