Sufficiency - sources of evidence, Auditing

Sufficiency - Sources of evidence

The audit evidence should in total enable the auditor to form an opinion on the financial statements.  Sufficiency is a measure of evidence obtained of the quantity.  How much evidence to obtain, what source to use, and the form the evidence should take is an issue left to the auditor to exercise his judgment in the light of the opinion called for under the terms of his engagement.  Of crucial importance however, he will be influenced by the materiality of the matter to be examined, the reliability and relevance of evidence available from each source and the cost and time involved in obtaining it. 

Quite frequently when the auditor obtains evidence from some sources that put when together gives him the necessary assurance.  Factors that affect sufficiency are usually dictated by the degree of risk of misstatement.  The risk itself is affected by the nature of the item, the adequacy of internal control, the nature of the business carried on by the entity, situations which may exact an unusual influence on management, the financial position of the entity, the materiality of the item in relation to the financial statements taken as a whole, the auditor's experience as to the reliability of the management staff of the enterprise and its records, the results of auditing procedures including fraud or error which may have been found and the type of information available.

Posted Date: 1/24/2013 7:20:22 AM | Location : United States







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

Write discussion on Sufficiency - sources of evidence
Your posts are moderated
Related Questions
describe how the auditors would determine that all investments income from shares had been properly recorded in the accounting records

Problem 10.42 An investment of $83 generates after-tax cash flows of $49 in Year 1, $67 in Year 2, and $131 in Year 3. The required rate of return is 20 percent. The net presen

Procedures that Auditor Adopts The auditor’s procedures will include: (1) Getting an understanding of the entity as a whole in order to see the accounting system in proper per

Assessment tasks: This assignment requires you to revisit the case of the collapse of US energy giant Enron Ltd. Your revisit starts with a reading of the excerpts from memos

Important Points about Auditor - Audit Process The Points that should be noticed that: i. The auditor must forever date his audit report. This date should be as close as pr

Verification Work - Audit Process At the same time the audit process will need verification work as an example: examination of costing records, allocation and verification of

a) Would King & Queen be liable to EFL? Provide specific case references to support your answer.

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

Determinants of amount of audit evidence

Co-operative Societies An audit in this case is carried out as a normal audit except you should note that the auditor is appointed by the Commissioner of Co-operatives and alth