Explain the different stages of Audit in Depth.

Audit in depth as the name implies means checking a transaction extensively from Origin to end. It is an audit technique which is used to evaluate the effectiveness of internal control system in an organisation. It is used in investigation exercises whereby the objective is to thorough examination of transactions or records. The different stages of Audit in depth are given below: Authorization of Purchase requisition: Check whether the requisitions are pre-printed, pre-numbered and authorized. See whether the purchase requisition have been authorized by competent official. Issue of Request for quotation: Check whether request for quotation have been issued or not. If not find the reasons of not issuing request for quotation. Check whether the requests for quotation have been issued to approved vendors. Issue of Purchase order: Check whether purchase order has been issued or not. If purchase order have been issued check whether it has been issued from the competent authority. Check whether the purchase order have been issued to the approved vendor who has given lowest quote. If not check the reasons. Check whether the reasons of issuing the purchase order to a vendor other than the lowest bidder have been approved by the competent authority. Receipt of goods and entry of goods in store ledger: check whether the goods receipt is as per specification given in the purchase order. If not check whether the deviations have been recorded and the communication has been made to the supplier or not. Check whether the goods receipt have been properly recorded in store ledger or not. Approval of payment of Supplier Invoice: Check whether the amount has been approved by the competent authority. Payment of supplier invoice: Check whether the supplier bill have been paid correctly. Check whether all deduction for short receipt of goods, late delivery of goods, inferior quality of goods, advance payment for the goods have been done or not. Accounting of Transaction: Check whether accounting made is correct or not. Check whether correct expenses code have been debited or not. Check whether the applicable accounting standard have been complied with or not.