Although the three phases are important, this phase becomes the center of what theaudit work, where all tests are performed and used all the techniques or procedures to find evidence that will support audit the audit report.
Elements of the implementation phase
1. Audit Tests
2. Sampling Techniques
3. Audit Evidence
4. Working Papers
5. Audit Findings
These techniques or procedures used by the auditor to obtain supporting evidence.
Tests are of threetypes:
i) Evidence of Control
j) Analytical Testing
k) Substantive Tests
Control tests are related to the degree of effectiveness of internal control imperative.
Laboratory tests are used making comparisons between two or more statements or making a financial ratio analysis of the entity to observe their behavior.
Substantive tests are applied to each account in particular lookingfor confirming evidence. Example, a tonnage of petty cash, balances outstanding from customers, and so on.
Used the sampling technique it impossible to conduct a full examination of the data. Therefore, this technique involves the use of part of the data (sample) of a greater amount of data (population or universe).
Sampling can be used statistics, or statistical.Is statistically when using statistical methods known in the selection of samples:
a) Random: when all data have the same chance of being chosen or selected. Example you have a list of 1000 customers and will examine 100 of them. It introduces the numbers 1 billion in a raffle and removed 100. The 100 selected customers will be reviewed.
b) Systematic: it randomly chooses a number and thendesignate a range for the following numbers. Example: You have a list of 1000 customers in the top 20 were chosen at random one. If it is on 12, you can designate the next 4 numbers listed at intervals of 50. Customers will be examined: 12 (randomly chosen), 13, 14, 15 and 16. Then the 62 (12 +50), 63, 64,65 and 66. Then the 112 (62 + 50), 113, 114.115 and 116. Then the 162, 163, 164, 165 and 166,and so on until the 100 sample.
c) Selection of cells: it produces a statistical distribution table and then select one of the cells. Example:
A list of 1000 clients can be divided into 5 groups (cells) of 200:
From 1 to 200 201 to 400 401 to 600 601 to 800 From 801 to 1000
You can choose one of the cells as a sample for examination.
d) Random: the sample based on the trial orassessment. It becomes a bit subjective, but is used by some auditors. The auditor may think that the errors could be in big games, and this review that are selected at random.
e) Selection of blocks, are selected similar transactions occurring within a given period. Example: select 100 sales transactions that occurred in the first week of January, or 100 of the third week, etc..
Audit EvidenceAudit evidence is called to "Any information used by the auditor to determine whether quantitative or qualitative information being audited is presented according to the criteria established."
The evidence to have probative value must be sufficient, competent and relevant.
Evidence is also defined as adequate proof of audit. Adequate evidence is information that is quantitatively sufficientand appropriate to achieve the audit results and qualitatively, has the impartiality needed to inspire confidence and reliability ...
The evidence is sufficient, if the scope of testing is appropriate. Only evidence found, could be not sufficient to prove a fact.
Evidence is relevant if the event is related to the objective of the audit.
The evidence is competent if it relates to the...