Saturday, July 11, 2009

What is Auditing Technique?

Auditing technique is defined as any technique used by auditors to determine deviations from actual accounting and controls established by a business or organization as well as uncovering problems in established processes and controls. Auditing techniques can be used to aid organizations by uncovering errors in business practices and providing a means of correction. Some businesses have used irregular accounting methods to hide certain monetary transactions and non-compliant behavior which has been uncovered by the use of varied auditing techniques. Other businesses have found new ways to save money and streamline business practices through various auditing techniques which have found waste in certain processes.

Auditing techniques can be used to uncover these issues in order to ensure ethical business practices and to minimize waste or possible oversights within an organization. The applied techniques can determine if any income is hidden or improperly categorized or reported; transactions are being completed between the organization and regulated or prohibited persons, groups, or countries; uncovering of environmental waste discrepancies; finding of data inconsistencies; or any other business practice that can be considered as a process error, oversight, or violation of ethics, regulations, and laws.


Auditing techniques are important to auditors in uncovering fraud in an organization.

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