Procedure of Audit Evidence

Procedure of Audit Evidence

The following procedure is generally followed for the verification of evidences

Verification of accounts of account balances shown in the financial statements or the accounting reports
To ensure that the procedure installed for control purposes is properly followed
Looking at the evidence for the balance amount shown in the ledger, the auditor has to work backwards in order to ensure that all those transactions responsible to give rise to that balance is also duly supported with evidences.

The auditor should also carefully ensure that procedures being followed by the organization are effective and do not have any room for leakages. In the area where the financial involvement is heavy, the auditor should carefully review internal control procedures and the implementation of procedures designed and installed for an effective control of function.