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
Non-Attendance at Stock Takes Whether the auditor is unable to attend a stock take, since he has numerous clients along with the same accounting date, or stock is situate at r

What is the role of the auditor, and what are the key duties the auditor must carry out? Role of the Auditor In modern commercial environmental it is desirable that bus

Need of Assertions in Obtaining Audit Evidence Management is responsible for the fair presentation of financial statements which reflect the nature and operations of the entit

Information in the Fixed Assets Register The register can obtain the following information: i. Fixed asset number. ii. The cost and the date of purchase. iii. Descrip

Ask question #MA. Evaluate the strengths and weaknesses of preview Company''s control environment B. What factors in Preview company''s control environment have led to and facilit

Develop an audit program to identify and reduce potential fraud using ACL.

Fraud and Error ISA 240: the Auditor’s duty to Consider Fraud and Error defines that whenever planning and performing audit procedures, computing and reporting outcomes thereby

Capital allowances vs. Depreciation Whether the client can prove such they will keep the existing levels of investment in original terms, then there may be justification to ac


Long-Term Liabilities Long-term liabilities are generally evidenced through an agreement called a debenture. For this purpose, long-term loans are often called debentures. The