Design of audit procedure

The systematic way to design audit procedure should start from assertions. We need set what assertion to ascertain. The steps are:

1) the assertion

2) the type of procedure to perform. It must be relevant to the assertion to be ascertained.

3) the timing of the audit evidence to apply. The audit period for transaction, or the year end date for balance. Also, the time to perform the procedure such as cash count, stock take or internal control.

4) the audit sampling on the population of the item. Statistical sampling with random selection or non-statistical sampling.

When we are satisfy with the above. We can perform the work.