Relevance of audit evidence, Auditing

Relevance of Audit Evidence

The relevance of audit evidence has to be determining in relation to the overall objective of forming a reporting and opinion on the financial statements.  Just to achieve this objective, the auditor requires evidence to enable him to draw reasonable result.  Compliance tests alone cannot give him along with this evidence.  Therefore he has to use substantive tests.  There are also certain assertions the auditor seeks evidence to confirm this and which the management is making.

a) Existence:  as do the recorded assets and liabilities exist on the balance sheet date.

b) Rights and obligations: are the assets owned through the enterprise and are the liabilities properly those of the enterprise.

c) Occurrence: whether did the recorded transactions in fact happen and do them about to the enterprise.

d) Completeness: as have all the liabilities and assets been recorded.  Have all expenses and income been recorded.

e) Valuation: have the amounts attributed to the liabilities and assets been arrived on in accordance along with stated accounting policies at a consistent and acceptable basis.

f) Measurement:  Have the expenses and income been measured in accordance along with stated accounting policies on consistent and acceptable basis.

g) Disclosure and Presentation: have the assets, liabilities, reserves and capital been properly disclosed.  Have expenses and income been properly disclosed whether suitable.

Posted Date: 1/24/2013 7:23:02 AM | Location : United States







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

Write discussion on Relevance of audit evidence
Your posts are moderated
Related Questions
Beneficial Ownership and Existence Existence Existence of buildings and Land is not hard to display. You may even be sitting in such building.  Conversely, the audito

Conducting a critical review of published literature about a topic is fundamental step in developing your research skills. A first step towards a review of the literature is to sea

Trademarks and Patent Trademarks and then written off over their useful lives and patents may be capitalized along with any renewal fees being charged to revenue. Whether a tr

Fairness -  Auditing The word fair can have the following meanings:  on the other hand clear, plain and distinct and on the one impartial, equitable and simple.  When fair is

Audit of Group Accounts The main problems can be split into three sections in this area as: 1. The audit of the holding company confirming and obtaining information concern

The Concept of Audit Evidence Auditing is an evidence gathering exercise. It is an exercise carried out to confirm the assertions made by the management in carrying out the man

An audit team is currently engaged in planning the audit of the financial statements of E Limited as at 30 June 2011. This was the first accounting period during which all the tran

What are the strength of Stock transfer note

discuss the factors affecting the sufficiency of audit evidence

example of it security policies in Hardware