Concept of audit evidence, Auditing

Concept of Audit Evidence

The auditing is an evidence gathering exercise.  It is an exercise continued out to confirm the assertions made through the management in carrying out the management duties and in producing accounts meant to provide a fair and true view.  So the authoritative document is the ISA 500 Audit Evidence.

The auditor proceeds through:

  1. Identifying the assertions made by the directors expressed or implied for every item in the accounts;
  2. The evaluation of every assertion for relative importance so as to assess the quantity and quality of audit evidence required;
  3. Using both compliance and substantive procedures to collect information and evidence to support the amount at which items have been disclosed and the nature of that disclosure;
  4. The evaluation of the evidence collected to ensure that it is relevant, reliable and sufficient;
  5. To formulate a judgement on the truth and fair presentation of the items.

Having formulated the judgment on each item included or excluded from the accounts, the auditor then formulates a judgment on the truth and fairness of the accounts taken as a whole.  To do this he will find that he needs other evidence in addition to the judgment he made on the individual items.

Posted Date: 1/24/2013 7:18:41 AM | Location : United States







Related Discussions:- Concept of audit evidence, Assignment Help, Ask Question on Concept of audit evidence, Get Answer, Expert's Help, Concept of audit evidence Discussions

Write discussion on Concept of audit evidence
Your posts are moderated
Related Questions
should your test for unrecorded liabilities be affected by the fact that a letter is obtained in which a responsible management official certifies that to the test of his knowledge

Managements interest in the accounting system Management needs complete and accurate books of accounts because: There is no other way the business can be controlled; Rec

what is the nature and scope of forensic auditing?

Party Disclosures used by IAS 24 IAS 24 utilized the following related party disclosures that 1. Nature of relationships between subsidiaries and parents, even whethe

Indications of inapplicability of Going Concern Unfortunately, Insolvency is a development industry as the economy suffers a down turn and consequently for a majority of enter

WHAT ARE THE MAIN PURPOSE OF HAVING PUBLIC SECTOR AUDITING

I need help with my homework for medical billing and coding can you help?

Beneficial Ownership or Title In January 1976 the famous case of Aluminium Industries vaassen B V v. Romalpa Aluminium Ltd radically altered the law along with regard to norma

concept,need,advantage

Checking consolidation papers The auditor pays particular attention to the calculation of: Goodwill arising on acquisition and consolidation Pre-acquisition and post-