Reference no: EM132368739

Topic - Audit Evidence

On completing the learning activities associated with this topic you should be able to

1. Outline the audit assertions.

2. Appraise different types of audit evidence.

3. Determine the persuasiveness of audit evidence.

4. Outline the various evidence gathering procedures.

5. Explain the issues to consider when using the work of an expert.

Reading guide - References: Moroney, Campbell and Hamilton, Chapter 5

Standards:

ASA 230: Audit Documentation

ASA 500: Audit Evidence

ASA 505: External Confirmation

ASA 580: Written Representations

ASA 620: Using the work of an Auditor's Expert

Review questions:

1. Why does an auditor have to consider the persuasiveness of corroborating evidence? Explain.

2. Discuss the impact of electronic processing of transactions on the audit.

3. What are the evidence gathering procedures an auditor might use? At which stages of the audit are these procedures appropriate? How do the procedures relate to the types of evidence an auditor can rely upon?

4. What is the difference between recalculation and re-performance? Explain using examples.

5. Why would an auditor be less likely to use payable confirmations than receivables confirmations?

6. How does inspecting a client's tangible assets assist the audit of the existence assertion for fixed assets?