Verification of audit information is a key skill for carrying out an internal audit but the extent of verification, and techniques used, are often highly variable, and may have a significant impact on the validity of your audit findings.

Imagine that you are auditing a transport procedure for a company with a fleet of vehicles. The procedure requires that each vehicle is logged on a database including details such as service intervals, insurance details, and input of monthly mileage data. How would you sample this information and check that the overall process is working?

Observing hundreds of auditors in training I have noticed that many are comfortable discussing the process with the responsible person, taking a sample of information from a database, and then checking this information in a filing system. In this case they may also take sample mileage details from the database and check these against vehicle mileometers in the car park. I call this “back to front auditing”, or checking input data against reality. The auditee is normally relatively confident at this stage because we are checking what they know exists and have records for. In this example it is unlikely that a known vehicle will have missed its MOT or service, and any gaps in mileage data will show up clearly on the database. (more…)