Limitation of audit evidence, Auditing

Limitation of Audit Evidence

The quantity and quality of evidence is constrained through the following factors as:

  1. Absolute proof is not possible;
  2. Some assertions are not material;
  3. Cost and time must be considered as accounts must be created within certain time scales and the auditor may have to do along with less than perfection, and ultimate evidence may be too expensive to get.
  4. Sensitivity: several items are of greater importance rather than others or else are able of greater variations.

For summaries: the auditor's degree of assurance is greater while evidence obtained from different sources is consistent along with each other.  Conversely when evidence from a source is inconsistent along with that achieve from another then further process may have to be performed for resolve the inconsistency.

Posted Date: 1/24/2013 7:28:53 AM | Location : United States







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

Write discussion on Limitation 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

Techniques of obtaining evidence ISA 500 mentions them as: (a) Inspection of records or documents, (b) Inspection of tangible assets, (c) Observation, (d) Inquiry, (e) C

e following situations involve a possible violation of the MIA ByLaws (on professional ethics, conduct and practice). For each situation, (1) decide whether or not the Code has bee

Fraudulent financial reporting Involves intentional misstatements or errors of amounts or disclosures in financial statements to mislead financial statement users. Fraudulent f

1. Why is studying Auditing different from studying other accounting topics? 2. How might understanding auditing concepts prove useful for consultants, business managers, and other

History - True and Fair International Standards on Auditing (ISAs) make it quite clear that the terms 'true and fair' and 'present fairly' which are used in audit reports in m

Final Review of the Financial Statements The work we have considered so far has shown which the auditor first gathers facts that the enterprise and the environment it operates

Why is studying Auditing different from studying other accounting topics?

Summary of IAS 2 Inventories are measured at the lower of cost and net realizable value. Entire realizable price is the calculated selling price in the regular course of busin

Reliability - Sources of evidence Reliability of audit evidence is influenced through its nature and its source and since it is dependent upon the specific circumstances, we c