Audit Approaches

System Based Audit Approach – How Does It Work

System based audit approach is quite similar to the risk-based audit approach. This approach required the auditor to understand and assess the effectiveness of the client’s key control system especially the key system related to financial reporting. Once the auditor assesses the effectiveness of the system, auditors’ works then focus on the areas that are …

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What is a Substantive Audit Approach? (Explanation & Example)

Definition: Substantive Audit Approach is one of the audit approaches used by auditors to verify the event and transactions in the financial statements by cover the larges volume of them. The principle of substantive audit approach is that when auditors cover the larges volumes with a high value of financial transactions and events in financial …

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Audit Approach: Four Types of Audit Approaches

Overview: Audit approaches are the methods or techniques that auditors use in their audit assignments. Both internal and external audits apply audit approaches to conduct their audit activities differently based on the nature of engagement, scope, nature of the client’s business, and audit risks. Selecting the right audit approach is important. It can help the …

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