Techniques of obtaining evidence, Auditing

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) Confirmation,
(f) Recalculation,
(g) Re-performance and
(h) Analytical procedures.

These can be further analyzed as follows:

(a) The physical examination: of tangible assets and counting them;

(b) Confirmation: These should be in writing, external sources being preferable to internal sources;

(c) Examination of original documents: Vouching should be carried out that is comparing original documents with entries in the books;

(d) Re-computation: This involves carrying out additions, calculations, extracting balances, rechecking postings and summaries.

(e) Scanning: This is useful in seeking the unusual or extra-ordinary item. It involves just flipping through the records and documents looking out for the odd items.

(f) Inquiry: This is asking questions of knowledgeable persons within and outside the entity. It is a necessary and valid technique.  Auditors however, prefer confirmation to oral answers.

(g) Correlation: This is seeking consistency in the records and in the accounts and using evidence obtained in other areas to provide additional assurance in other areas.

(h) Observation: Visual evidence is more satisfactory therefore, observing a procedure being performed is the best possible confirmation. However, observation has the drawback that you can only rely on it at the time you are observing. You can never be sure that the procedure is carried out that way all the time.

Posted Date: 12/3/2012 6:37:20 AM | Location : United States







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

Write discussion on Techniques of obtaining evidence
Your posts are moderated
Related Questions
Related Party Transactions Related party transactions-a transfer of obligations or resources among related parties, regardless of whereas a price is charged. A party is rel

Fitri, a sole proprietor in pulic practice, plans to establish a separate department that will provide internal audit service to his audit clients.

Audit Risk and Business Risk We saw in earlier studies that audit risk is often categorized as the product of inherent risk, control risk and detection risk. Auditors should

IAS 27 - Audit Process IAS 27 applies to the presentation and preparation of consolidated financial statements for a group of entities within the control of a parent. It as w

You have been assigned to carry out a stock take in a company. Your Audit Supervisor has given you with an audit programme. As part of a briefing session to your juniors, you a

Audit Reports - Going Concern In the vast widely of cases, the going to relate assumption is suitable and whether applied no mention require be made in the auditor's report.

The first work you do in IDEA IS SECTION 2.5. The accounts receivable folder that you are instructed to select on page 25 is a folder that you are to create previously on page 23.

I need help with my homework for medical billing and coding can you help?

Auditors Responsibilities with regard to related parties ISA 550 Related Parties states which the auditor should perform audit process designed to find sufficient suitable

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