What is the round robin method, what are its advantages and disadvantages, and how to draw lots?

1, circulation method, also known as block audit method, is a method of understanding and evaluating internal control put forward and applied in the 1970s. This is a method of grouping closely related transaction types or account balances as a business cycle to organize and arrange audit work.

2. Advantages and disadvantages of circular method:

① Advantages: The advantage of this method is that the substantive procedures of transactions and accounts are directly related to the internal control test conducted according to the business cycle, which deepens the audit team members' understanding of the economic business of the audited unit and is conducive to the rational division of labor of the audit. Assigning the financial statement items involved in a specific business cycle to one or more audit team members can improve the efficiency and effectiveness of the audit, so the business cycle method gradually replaces the statement item method.

Disadvantages: This method needs repeated accounting and takes a long time.

3, the circulation lottery method:

Plan-execute-check-handle.

Extension of knowledge points:

The research of circular method originated in the 1920s, when Walter A. Shewhart, a famous statistician known as the "father of statistical quality control", put forward the concept of "plan-implement-check", and later Deming further developed circular method in shewhart.