The Institute of Chartered Accountants of England issued a statement on the General Principles of Auditing on 16th August 1961, which shows the meaning of “Examination in-depth” when it states: “Examination in-depth” involves tracing a transaction through its various stages from origin to conclusion, examining at each stage to an appropriate extent the vouchers, records and authorities relating to that stage and observing the incidence of internal check and delegated authority. The examination in depth is sometimes called “Auditing in depth.”
Auditing in depth indicates a detailed examination of a few transactions i.e. from the transaction’s starting point to the transaction’s end. It evaluates the organization’s internal control system’s effectiveness.
Auditing in depth means a few selected transactions’ examinations from the starting to the end through the transactions’ entire flow. During this process, the auditor checks all the operational and accounting aspects of the transactions from the source to the end.
It helps the auditor having a total view and evaluating the procedures through chosen or selected transactions. The auditor uses this technique for evaluating the activities of the internal check system and internal control.
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