TECHNIQUES OF OBTAINING EVIDENCE

(i) Inspection: Inspecting the documentary evidence like deed papers, certificates etc relating to the audit whether in possession of the entity or the third parties.

(ii) Observation: Observing the process or procedure being performed by others. Like physical verification and counting of inventory.

(iii) Enquiry: Enquiring from the client, his staff or third parties having knowledge about a particular item or activity.

(iv) Confirmation: Seeking information from third party having knowledge about a particular transaction.

(v) Computation: It involves checking of the arithmetical accuracy of a source documents and accounting records.

(vi) Analytical Review Procedures: Analysis of significant ratios and trends for investigating unusual fluctuation and items.

(vii) Independent Execution: In this auditor performs the procedure and controls that were originally performed as part of entity’s internal control system.