Relevance of audit evidence, Auditing

Assignment Help:

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.


Related Discussions:- Relevance of audit evidence

Fitri, The following situations involve a possible violation of the MIA ByL...

The following situations involve a possible violation of the MIA ByLaws (on professional ethics, conduct and practice). For each situation, (1) decide whether or not the Code has b

What is withholding allowance, Q. What is Withholding Allowance? Withho...

Q. What is Withholding Allowance? Withholding Allowance -Every taxpayer is allowed to claim a withholding allowance, which exempts a certain amount of wages from being subject

Incremental costing analysis, Fleet Bhd operates a chain of high street ret...

Fleet Bhd operates a chain of high street retail outlets selling clothing and household items. In 1995, this company was heading for a financial loss and was deemed to have lost st

Provision and accruals, Provision and Accruals Previous to we consider...

Provision and Accruals Previous to we consider the audit procedures along with regard to accruals and provisions, it is essential to clarify the meaning of two words in genera

Acounting information systems, discuss the 4 stages of data processing in a...

discuss the 4 stages of data processing in an accounting information system

Audit planning, What document usually forms the basis of the audit team bri...

What document usually forms the basis of the audit team briefing?

Audit of current assets, Audit of Current Assets Verification of Wor...

Audit of Current Assets Verification of Work and Stocks in Progress Authoritative documents: IAS 2/ISA 500/501 IAS 1 Preparation of financial statements requires inv

Related parties - audit evidence, Related Parties - Audit Evidence IAS...

Related Parties - Audit Evidence IAS 24 prescribes the disclosures essential to the possibility to draw attention which the financial position and loss or profit of an entity

Demonstrate knowledge of the current tax-auditing , 1. Demonstrate knowledg...

1. Demonstrate knowledge of the current tax, auditing and accounting issues that concern governmental and not-for-profit entities 2. Explain the difference between various funds (

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd