Techniques of obtaining evidence, Auditing

Techniques of Obtaining Evidence

ISA 500 mentions them as such:

  1. Inspection of documents or records,
  2. Inspection of tangible assets,
  3. Observation,
  4. Inquiry,
  5. Confirmation,
  6. Recalculation,
  7. Analytical procedures
  8. Re-performance.

These can be further analyzed as follows that:

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

b) Confirmation. Here these should be in writing, external sources to be preferable to internal sources;

c) Examination of original documents.  So vouching should be carried out which is comparing unique documents along with entries in the books;

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

e) Scanning: This is required in seeking the extra-ordinary or unusual item.  It includes just flipping with the documents and records looking out for the odd items.

f) Inquiry: This is asking questions of knowledgeable persons along within and outside the entity.  It is a valid and essential technique.  However auditors, prefer confirmation to oral answers.

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

h) Observation: Visual evidence is much more satisfactory therefore, observing a procedure being performed is the best possible confirmation.  However, observation has the draw back that you can only rely on it at the time you are observing.  You cannot be confident that the procedure is carried out which way all the time.

Posted Date: 1/24/2013 7:25:41 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
Government has recently set up a parastatal body responsible for waste management in Mauritius. The management is unsure as to the need for an audit and the setting up of an intern

The auditors for Weston University are conducting their audit for the fiscal year ended December 31, 2011. Specifically, the audit firm is now focusing on the audit of revenue from

Wal-Mart Locate the 2009 Form 10-K for Wal-Mart in Appendix A and consider the following questions: 1. With respect to the report of the external auditors to "the Board of Directo

General phases of control evaluation are: Phase 1: Understand and document • Understand the client's internal control • Document the understanding of internal control o

Why is studying Auditing different from studying other accounting topics?

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

Financial Instruments - IAS 32 and IAS 39 IAS 39 and IAS 32 are examinable to the extent such they deal along with the presentation and measurement of equity, debt or else con

The assignment continues the research process by further exploring and defining the problem statement through the development of research objectives. These objectives will allow yo

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

Accounting Treatment Prescribed by IAS 38 IAS 38 prescribes the accounting treatment about to intangible assets, except: a) Intangible assets which are under the scope of a