How to conduct audit work?

An auditor should conduct audit of business organization as follows:

a) Preparing audit program: Preparing audit program is one of the most important job of auditor. He should prepare audit program to make work of audit effective and efficient.

b) Review of internal control system: Internal control system is the back bone of audit program. If internal control system is effective, an auditor can apply test check otherwise he needs to check in detail. Hence an auditor should review the internal control system of the organization.

c) Conducting tests: An auditor should test various facts before proving the truth and fairness of financial statement. Such facts are;

1. Collection, use and recording of evidence: An auditor should collect physical evidence, information and records. The evidence which is collected should be reliable and sufficient.
2. Field visit and inspection: An auditor can use field visit and inspection process to find out the reliable evidence. He can discuss with the related party.
3. Discussion and interview: An auditor should hold discussion and interview with the concerned party where he found weakness and suggest the client to improve such error and frauds.
4. Comparative study and analysis: An auditor should comparatively study and analyze the statement of client with the similar type of organization. With the help of comparative study and analysis, an auditor can find out the progress is reasonable or not.

d) Developing Audit points: After completing above function, an auditor should develop points where special attention is to be made while conducting the audit. His audit points helps audit easier and more reliable.