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
Analyse the ratios in conjunction with the additional information and identify from your analysis, implications for the audit and any particular audit steps that need to be underta

Hi Dear, Could you please help me with online exam in Auditing Class !!

Question 1: Auditing standards regulate the audit profession. a) Explain the importance and role of audit standards. b) Lists four of the standards issued by the INTOSAI

Procedures in Evaluating the Work of Expert The auditor must get reasonable assurance which the expert's work constitutes suitable audit evidence in based of the financial inf

what is the role of a joint auditor



Q. Walkthroughs for auditor? Walkthroughs provide the auditor with evidence to: 1. Confirm auditor's understanding of the process flow of transactions. 2. Confirm auditor

Explain the independence between the auditor and the client on financial statement audit engagements

Comparison of the Negative and Positive Methods Negative Method According to this method of circularisation, the customer is asked to communicate only when he does not ag