When making the five critical decisions in each of the five audit stages, auditors undertake a structured set of activities that correspond with the concepts of human information processing theory as they relate to decision making. In an auditing environment these activities may be categorized as follows:
An auditor's planning activities correspond to hypothesis generation activities in human information processing theory and include strategic, tactical and operational planning activities. Audit planning activities include the identification of the criteria to be used in making each critical decision. More ...
An auditor's evidence gathering activities correspond to information search activities in human information processing theory. The activities include all the activities performed by auditors that have as their objective the gathering of audit evidence (e.g. analytical procedures, inspection, confirmation, vouching, recalculation, physical examination, observation, inquiry). More ...
An auditor's evidence evaluation activities correspond to information evaluation activities in human information processing theory. Evidence evaluation activities include those activities performed by auditors that relate to (a) the estimation and evaluation of the sufficiency of quantity and appropriateness of quality of the evidence gathered, (b) the evaluation of exceptions and their implications, and (c) the evaluation of audit risk components. More ...
An auditor's decision making activities correspond to the activity of choice in human information processing theory. There is essentially only one decision-making activity and that is simply the activity of choosing a particular course of action. Thus, the auditor's choice is closely followed by an action of some kind. More ...
Other activities performed by auditors include delegation, supervision and review which are continuous throughout the audit engagement. More ...
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