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(Manner of handling the audit work)

1) The two terms Audit Procedures and Audit Techniques are often used interchangeably but there is a clear distinction between the two.
2) The term audit procedure refers to “ An Aspect “ to be performed by an auditor for achieving the overall audit objective.
3) Procedure may comprise of number of techniques and represents the broad frame of the manner of handling audit work.
4) All procedures can be conveniently classified either order compliance procedure or under substantive procedure.
5) On the other hand the term Audit Technique refers to “ A Method “ to be used for implementing or performing a given audit procedure.
6) A set of Techniques may be required for implementing a procedure and a set of procedures are required for achieving the over all Audit Objective.
7) Different procedures are meant to be adopted for different audits. The same procedure may not be suitable for the same audit in subsequent years.
Hence depending on the Nature and Size of the entity, the auditor must
Select a suitable audit procedure.
Selection of such audit procedures depends on the professional judgement and past Experience of the auditor.

Co-ordination of Audit Procedures: - the auditor should conveniently Assemble the audit procedures in the most Rational and Natural manner.
In assembling the procedures and methods, the related items should be grouped together in order make the audit programme comprehensive and purposeful. When such related items are grouped, the audit procedures will be helpful in conveniently distributing the audit work among assistants.

Example: - When the auditor examines plant and machinery, he should group the related items of plant and machinery such as Errection charges, Installation Expenses, Repairs, Maintenance, Depreciation etc. in his Examination.
Such grouping of related items (stated in above example) will prilitate the easy flow of work with the least possible information.