An auditing investigation refers to a detailed verification and clarification of any doubts that may have occurred regarding any form of transaction, which have been made by the accounts department of an organisation or company. This usually involves the investigation of ‘large’ purchases such as property and other assets that are deemed large.
Furthermore, the purpose of the investigation is to establish the effectiveness, efficiency and the economy of the processes of the businesses transactions and to further analyse the effectiveness of their control over the company’s income. This evidence will be extracted from such information as: Oral statements, documents, records and the auditor’s own observations. The auditor must ensure that the evidence that is collaborated must be not only relevant to the purpose of the audit, but similarly, the evidence should be accurately documented in the audit records and then it must be subject to verification.
The auditor collects the majority of the evidence through an interview process, but it is essential that the auditor confirms oral statements by asking the auditee to verify the facts. This verification may come in the form of documents or other records in order to support the facts that have been claimed. In some cases, where there is no documentary evidence, it may be necessary for the auditor to ask the same question to several interviewees for corroboration.
An auditing investigation is essential to any company in order to keep updated with the different transactions of the company; this is to ensure control and resourcefulness of the company’s transactions.
Furthermore, the purpose of the investigation is to establish the effectiveness, efficiency and the economy of the processes of the businesses transactions and to further analyse the effectiveness of their control over the company’s income. This evidence will be extracted from such information as: Oral statements, documents, records and the auditor’s own observations. The auditor must ensure that the evidence that is collaborated must be not only relevant to the purpose of the audit, but similarly, the evidence should be accurately documented in the audit records and then it must be subject to verification.
The auditor collects the majority of the evidence through an interview process, but it is essential that the auditor confirms oral statements by asking the auditee to verify the facts. This verification may come in the form of documents or other records in order to support the facts that have been claimed. In some cases, where there is no documentary evidence, it may be necessary for the auditor to ask the same question to several interviewees for corroboration.
An auditing investigation is essential to any company in order to keep updated with the different transactions of the company; this is to ensure control and resourcefulness of the company’s transactions.
