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 …
Definition: Risks based audit approach is one of the well-known audit approaches used by the auditor to perform an audit of financial statements and also used by the internal auditors for their internal audit purpose. The principle of this approach requires the auditor to put their effort into the high risks areas rather than spend …
Definition: The Balance sheet audit approach is a kind of audit approach that executes by the auditor in the situation that auditors perform most of their testing on the items in the balance sheet rather than items or transactions in the income statement. An auditor applies the balance sheet audit approach based on the concept …
What is the Balance Sheet Audit Approach? – Explained Read More »
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 …
What is a Substantive Audit Approach? (Explanation & Example) Read More »
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 …
