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
Discontinued Operations - Audit of Accounting Estimates A discontinued operation is a component of an entity that either has been disposed of or is held for sale. So it might


two advantages of an Audit to the shaire holders

List the internal controls that should be in effect solely because a EDP system is employed, classifing them as (1) Those controls pertaining to input of information and (2) All ot

Firm valuation refers to the total value of a firm in the capital market. It is the stock price of a firm times its outstanding shares. Total value of a firm is also called market

Limitation of Audit Evidence The quantity and quality of evidence is constrained through the following factors as: Absolute proof is not possible; Some assert

Current Audit File The current audit file might include inter alia: a) A copy of the audited financial statements and any report prepared as a result of audit work carried out

Standard Defines Development and Research The standard defines development and research as follows: (a) Research - planned and original investigation undertaken along with

Provision and Accruals Previous to we consider the audit procedures along with regard to accruals and provisions, it is essential to clarify the meaning of two words in genera