This document discusses various tools and techniques that can be used for auditing, including surveys, questionnaires, interviews, focus groups, and direct observation. Surveys are useful for collecting background data, behavioral data, attitudes, opinions, and knowledge, but have limitations such as imposing the researcher's structure and not capturing deeper information. Questionnaires guide interviews and distribute questions, while focus groups allow collection of more information from groups of 5-10 people. Interviews can establish trust but are expensive. Direct observation techniques include participant observation, field observation, trace data, and archival data. Overall, the document provides an overview of common qualitative and quantitative audit data collection methods.

1. Auditing Tools and Techniques
Ajilal

2. Auditing
“Systematic examination and verification of a firm's book of
account, transaction records, other relevant documents, and
physical inspection of inventory by qualified accountants ”

3. Audit Tools and Techniques
The collection of accurate and comprehensive data is
one of the key factors for an effective audit. Data for
audit can be collected through surveys,
questionnaires, interviews, focus groups and direct
observations. There are difference in the way these
methods can be applied depending on the type of
audit., and the nature and sources of data.

4. Tools and Techniques

5. Surveys
Surveys help in collecting information on five
variables.
1. Background data(ie; Age ,Education, Income etc.)
2. Behavioral data(ie; Buying habits etc.)
3. Data on attitudes and beliefs
4. Data on opinions
5. Data on knowledge of company programmes

6. Types of surveys
1. Written survey:
It has lowest response rate. The data is unreliable
2. Telephone(oral) survey:
It is the fast means of collecting data

7. Limitation of surveys
 A survey imposes on the respondents, the structure
and standards of relevant of the researcher.
 Surveys assume that all people use the same
language and interpret survey questions in the same
way.
 Surveys usually reveal only superficial information
that is complete.

8. Cont…
 The survey distorts the political reality of the
organisation implying that all opinions carrying
equal weight.
 Use of random samples in the survey approach
assumes that the required information is distributed
evenly through the organisation and could lead the
researcher to develop the distorted picture of the
company.

9.  The survey process itself affects the response
depending on when and by whom the questions are
asked.
 Surveys assume that peoples have opinions, but in
reality, people may not disclose that they do not
know or they do not have an opinion.
 Surveys assume a relationship between attitudes or
opinion and behavior.
Cont…

10. QUESTIONNAIRES
There are certain advantages by this method.
1. They serve as a guide for the interviewers.
2. They are easily distributed to the respondents.
3. They serve as a preparation tool for the audit team.
4. They supplement other data gathering techniques.

11. Structure of a questionnaire
 The purpose of the questionnaire and the topic being
covered govern the structure to be used in designing
the questionnaire.
 Generally, the most broad questions are put in the
beginning and the most specific ones at the end.
 Effective questionnaires should,therefore,use clear,
easily understandable language, avoid ambiguous
questions, avoid putting forth a point of view which
is likely to be biased, and use short sentences.

12. FOCUS GROUPS
 This method serves another approach to data gathering.it
allows the collection of more information and
involvement of more people than is possible in one-on-
one interviews. A focus group may have 5 to 10
personnel. The session may last for couple of hours.
 Successful and effective focus groups have a skilled
facilitators, who is responsible for guiding the group and
managing group dynamics, well-selected participants
coming from a homogeneous group, and an effective
moderator guide who targets the information required
from the session. The facilitator manages the information
flow between group members

13. INTERVIEWS
It is another method of collecting data on sensitive
subjects. Here the skilled interviewers can establish a
relationship of trust with the respondent. Interviews
are often used by the audit team. Interviews are more
suitable as most respondents enjoy talking rather than
writing. But interviews are among the most expensive
research tools. Sometimes it is difficult to aggregate
data gather from interviews.

14. TYPES OF INTERVIEWS
 Structures interviews
 Semi structured interviews
 Unstructured interviews

15. DIRECT OBSERVATION
This method finds many applications in corporate
environment, especially in the audit process. various
techniques are available under direct observation as
follows
1. Participant observation
2. Field observation
3. Trace data
4. Archival data

16. Thank You