The process of auditing is a series of risk assessment and risk response processes that involve a lot of professional judgment and experience. But apart from the above mentioned high level stuff, there is still a lot of regularity in auditing. The following discussion does not cover risk assessment and special risk response procedures, but only for general subject audits. However, it is only the opinion of one family, and if it conflicts with the auditing standards, please refer to the auditing standards.

1. Direct certification, i.e., obtaining direct evidence of the accuracy of financial statement figures. Mainly found in the income statement accounts and part of the balance sheet accounts of the audit. The main audit methods are:

1> correspondence, through bank correspondence, correspondence, related party correspondence to prove that the closing balance is correct;

2> inventory, including cash inventory, bills inventory, inventory of inventory, fixed assets inventory, inventory of construction in progress, etc.;

3> details of the test, through the income statement of the current period of the amount of direct sampling to prove the accuracy of the amount of the occurrence of sampling to prove the accuracy of the incurred amount;

4> proving the accuracy of the incurred amount through substantive analytical procedures.

2, indirect proof, mainly in the balance sheet accounts. These accounts generally can not be proved accurate by direct methods, we use a relatively roundabout way to prove.

Audit methods:

Specifically can be divided into review, check, query, comparison, analytical review, inventory, recalculation and so on.

(1) review: refers to the detailed examination and review of vouchers, books and statements to ascertain the correctness, legality and compliance of the information and operations, so as to detect errors or doubts.

(2) check: refers to the accounting vouchers, books, statements and other information on the logical relationship between the check to identify the information itself reflects the economic activity is true, correct, reasonable and effective an audit method. Generally used to verify that the accounts are consistent with the accounts, the accounts are consistent with the evidence.

(3) inquiry: face-to-face and correspondence, face-to-face inquiry is the auditor to the audited unit inside and outside the relevant personnel face-to-face consultation, verification, correspondence is a method of obtaining evidence by sending letters to the relevant units. This type of inspection is used for preliminary understanding of the situation or to assist in verifying the correctness of other information, and the abnormalities found need to be further investigated and understood, and can not be treated as audit findings or conclusions written in the report.

(4) Analytical review (big data analysis): A method of obtaining preliminary audit clues by analyzing the significant ratios or trends of the audited entity, including investigating abnormal changes in these ratios or trends and their differences from the expected amounts and related information. What is discovered through an analytical review can only indicate the existence of anomalies and cannot be used directly as evidence, but needs to be verified through other audit procedures.

(5) Inventory:Verify whether there is a difference between the quantity of physical items (inventory, fixed assets, notes, cash) and the book data. If the auditor is familiar with the products and sites, he can self-inventory; if not, he can supervise the inventory.

(6) Recalculation: Recalculating data by computer or manually. This type of audit is often used to check the correctness of the data.