Table of Contents
What are the four standards of audit evidence?
Appropriateness: The quality, relevancy, and reliability of the evidence. Sufficiency: The quantity of audit evidence — enough evidence to evaluate the audit client's management assertions. Evaluation: A decision on whether the evidence is compelling enough to allow you to form an opinion.
What are the types of audit evidence?
What Are the Types of Audit Evidence?
What are the requirements of audit evidence?
The audit evidence generated by the planned audit procedures should be sufficient and appropriate to support and corroborate, or to contradict, the management's assertions in respect of specific classes of transactions, account balances or disclosures in the financial statements.
Related Question What are the four audit evidence decisions that are needed to create an audit program?
Is the evidence in audit process?
Audit evidence is evidence obtained by auditors during a financial audit and recorded in the audit working papers. Auditors need audit evidence to see if a company has the correct information considering their financial transactions so a C.P.A. (Certified Public Accountant) can confirm their financial statements.
Which of the following types of audit evidence is the most reliable?
(1) Information obtained indirectly from outside sources is the most reliable audit evidence.
What is reliability of audit evidence?
• Audit evidence is more reliable when it is obtained from knowledgeable. independent sources outside the entity. • Audit evidence that is generated internally is more reliable when the. related controls imposed by the entity are effective.
What is audit evidence and documentation?
Audit evidence refers to Information used by the auditor in arriving at the conclusions on which the auditor's opinion is based. Among other things, audit documentation includes records of the planning and performance of the work, the procedures performed, evidence obtained, and conclusions reached by the auditor.
What are the steps in audit planning?
How do you create an audit program?
How do auditors decide how much audit evidence?
The quantity of audit evidence required depends on the assessment of risk conducted by the auditor. If the risk of material misstatement is high then higher quantity of audit evidence is required to establish (confirm) by the application of audit procedures.
What are six factors that affect the reliability of audit evidence?
Which of the following types of evidence is generally most reliable?
Confirmation of accounts receivable balance. Confirmation of accounts receivable balance is considered to be the most reliable because it
Which of the following generally provides the most reliable evidence?
Objective evidence is more reliable, and hence more persuasive, than subjective evidence. The two most important factors when determining the appropriate sample size in an audit are the auditor's expectation of misstatements and the objectivity of the evidence.
What is primary audit evidence?
Primary sources of audit evidence involve the following: Elemental documentation of the company and the accounting system. Tangible assets. Personnel and the administration of the company. Suppliers, customers, knowledge of the company's business and other parties dealing with the company.
What is audit evidence and its importance?
Audit evidence is important because it is all the information that an auditor gathers to reach his audit opinion about an organization's financial statements and/or internal control environment. Audit evidence can be divided into internal and external sources.
What are the four broad objectives of internal control?
Internal controls consists of all the measures taken by the organization for the purpose of; (1) protecting its resources against waste, fraud, and inefficiency; (2) ensuring accuracy and reliability in accounting and operating data; (3) securing compliance with the policies of the organization; and (4) evaluating the
What is an auditing process?
A set of actions and procedures to control an organization.
They aim to test and prove that processes are being conducted effectively and follow due control mechanisms. They also aim to detect opportunities for improvement in the audit process.
What is standard audit program?
1. Standardized Audit Program is a document developed to serve as a checklist of questions to be asked during an audit. BL-A-5 click to know more. Notes (1): This is a step-by-step set of audit procedures and instructions that should be performed to complete a specific area of the audit.
What is audit Programme in practical auditing?
An audit program, also called an audit plan, is an action plan that documents what procedures an auditor will follow to validate that an organization is in conformance with compliance regulations. The framework should explain the audit's objectives, its scope and its timeline.
What are four potential tools available to the auditor for documenting her understanding of an entity's system of internal control?
Tool available to the auditor to document his or her understanding of internal controls include: procedure manuals of the entity, organizational charts, questionnaires on internal controls, flowcharts, and a narrative description.
What are the factors the auditor should consider when obtaining sufficient appropriate audit evidence?
The sufficiency of audit evidence relates to its quantity while its appropriateness relates to its quality. The appropriateness of audit evidence further depends on two factors, relevance, and reliability.
What are the factors that influence the reliability of audit evidence?
The reliability of information to be used as audit evidence is influenced its source, nature, and the circumstances under which it is obtained, including the controls over its preparation and maintenance.