There are different approaches to conduct the audit which are as follows:

• Substantive approach
• Systems-based approach
• Transaction cycle approach
• Directional testing
• Risk-based approach

Whereas the procedures are the tasks that are carried out after a particular methodology is selected. Procedures are applied or executed in the form of confirmation, recalculation, re-performance, inquiry, observation etc.

Simply put, procedures are defined on the basis of the methodology adopted by the firm. Approach/methodology will determine what needs to be found, done or executed whereas, procedures are the tasks that will find, do or execute what was determined in accordance with the approach.

As required by International Standards on Auditing we also evaluate audit risk, carrying out audit planning, evaluating materiality levels, collecting audit evidence by selecting audit samples, collecting external confirmations, subsequent events and other audit tests.