Audit Procedures
How the auditor gathers evidence and which procedures are used in typical areas
Go to the Statutory Audit serviceChecked against the official source:
Audits in Uzbekistan are conducted under the International Standards on Auditing published by the International Auditing and Assurance Standards Board (Article 9 of Law ZRU-677 on Auditing). Procedures are the ways of obtaining audit evidence: ISA 500 sets out their types, and ISA 330 distinguishes tests of controls from substantive procedures.
The law gives the auditor the rights on which the procedures rely: to obtain documentation in full, to verify the physical existence of property, and to obtain explanations and written confirmations from third parties (Article 28).
Types of procedures
- Inspection — examining documents and assets: contracts, acts, fixed assets.
- Observation — being present during a process: counts of inventory and cash.
- External confirmation — written responses from banks and counterparties (ISA 505).
- Recalculation — checking the arithmetic: depreciation, VAT, provisions.
- Reperformance — the auditor performs the client's control procedure independently.
- Analytical procedures — comparing indicators and looking for deviations.
- Inquiry — oral and written questions to management and staff.
Tests of controls and substantive procedures
Tests of controls check whether the company's controls work (payment approvals, reconciliations). Substantive procedures look for misstatements in the amounts themselves: tests of details and analytics. The weaker the controls, the more substantive procedures are needed.
Area — typical procedures
- Cash: bank confirmations, cash count, reconciliation of statements.
- Receivables: counterparty confirmations, ageing analysis, subsequent receipts.
- Inventory: observing the stocktake, valuation testing, checking write-offs.
- Fixed assets: inspecting documents and the assets themselves, recalculating depreciation.
- Revenue: monthly analytics, cut-off testing, reconciliation with e-invoices (ESF).
- Taxes: recalculation, reconciliation with tax returns and personal tax accounts.
The link with materiality and sampling
The extent of procedures is driven by materiality and the risk assessment: for higher-risk items there are more tests of details and larger samples. The results of procedures are documented in the working papers and form the basis of the audit report (Article 39).
Planning an audit?
We will tell you which procedures your areas will require and what to prepare in advance.
Go to the Statutory Audit serviceFrequently asked questions
Which standards do auditors in Uzbekistan apply?
The International Standards on Auditing, Quality Control and related engagements published by the IAASB of IFAC (Article 9 of ZRU-677).
Can the auditor request confirmations from our counterparties?
Yes, obtaining written confirmations of information from third parties is a right of the audit organization (Article 28).
Sources
- Закон «Об аудиторской деятельности» № ЗРУ-677 — ст. 9, 28, 39
Book a meeting with a Leader Audit partner
Your first consultation is free. Get an expert assessment of your business risks.