{"id":1173,"date":"2021-04-30T02:08:28","date_gmt":"2021-04-30T02:08:28","guid":{"rendered":"https:\/\/alminawi.com\/?p=547"},"modified":"2021-04-30T02:08:28","modified_gmt":"2021-04-30T02:08:28","slug":"audit-function-episode-11-relevant-methods-for-collecting-evidence","status":"publish","type":"post","link":"https:\/\/e.americanpro.org\/?p=1173","title":{"rendered":"Audit Function: Episode 11, Relevant Methods for Collecting Evidence"},"content":{"rendered":"<p data-start=\"74\" data-end=\"573\">In the audit process, gathering reliable evidence is crucial to forming an accurate conclusion. Auditors apply various methods\u2014<strong data-start=\"201\" data-end=\"212\">inquiry<\/strong>, <strong data-start=\"214\" data-end=\"229\">observation<\/strong>, <strong data-start=\"231\" data-end=\"257\">inspection\/examination<\/strong>, <strong data-start=\"259\" data-end=\"276\">recalculation<\/strong>, <strong data-start=\"278\" data-end=\"295\">reperformance<\/strong>, <strong data-start=\"297\" data-end=\"324\">validation\/confirmation<\/strong>, and <strong data-start=\"330\" data-end=\"342\">analysis<\/strong>\u2014to collect and assess evidence. <strong data-start=\"375\" data-end=\"393\">Audit sampling<\/strong> is often used alongside these methods to test a representative portion of the data, enabling auditors to form conclusions about the entire population without examining every item.<\/p>\n<p data-start=\"575\" data-end=\"1052\">For example, in an internal audit of the payroll process, the auditor begins with <strong data-start=\"657\" data-end=\"668\">inquiry<\/strong>, asking HR and finance personnel about payroll procedures and controls. This is followed by <strong data-start=\"761\" data-end=\"776\">observation<\/strong>, where the auditor watches the payroll run process to understand how data is processed and verified. To test the accuracy of employee payments, the auditor selects a sample of 30 employee records for <strong data-start=\"977\" data-end=\"991\">inspection<\/strong>, examining salary slips, timesheets, and approval documents.<\/p>\n<p data-start=\"1054\" data-end=\"1587\">Next, the auditor performs <strong data-start=\"1081\" data-end=\"1098\">recalculation<\/strong> on the sampled records, verifying gross pay, deductions, and net pay manually. To test system accuracy, <strong data-start=\"1203\" data-end=\"1220\">reperformance<\/strong> is conducted by running a parallel payroll for a small group and comparing it with actual outputs. For <strong data-start=\"1324\" data-end=\"1351\">validation\/confirmation<\/strong>, the auditor may send confirmation letters to a sample of employees to confirm amounts received and reported. Lastly, <strong data-start=\"1470\" data-end=\"1495\">analytical procedures<\/strong> are applied, such as comparing payroll trends over several months to detect unusual spikes.<\/p>\n<p data-start=\"1589\" data-end=\"1863\" data-is-last-node=\"\" data-is-only-node=\"\">This multi-method approach, supported by audit sampling, ensures that the evidence gathered is varied, sufficient, and reliable. It enhances audit quality by combining quantitative data with qualitative insights, ultimately helping auditors reach well-supported conclusions<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the audit process, gathering reliable evidence is crucial to forming an accurate conclusion. Auditors apply various methods\u2014inquiry, observation, inspection\/examination, recalculation, reperformance, validation\/confirmation, and analysis\u2014to collect and assess evidence. Audit sampling is often used alongside these methods to test a representative portion of the data, enabling auditors to form conclusions about the entire population without [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1026,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[17],"tags":[],"class_list":["post-1173","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-internal-audit"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/e.americanpro.org\/wp-content\/uploads\/2021\/03\/18-e1750016273976.avif","_links":{"self":[{"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/posts\/1173","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1173"}],"version-history":[{"count":0,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/posts\/1173\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/media\/1026"}],"wp:attachment":[{"href":"https:\/\/e.americanpro.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}