Techniques of obtaining evidence, Auditing

Assignment Help:

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.


Related Discussions:- Techniques of obtaining evidence

Audit evidence, why are the figures presented to an auditor not sufficient ...

why are the figures presented to an auditor not sufficient for absolute reliance

Explain what further evidence you would seek in relation, 1. On 5 August 20...

1. On 5 August 2012, the financial controller informed you that the board has recently received a letter from the assistant general manager, Mr. Tan. The letter contains a confessi

Assertions about classes, Assertions about classes Assertions about ...

Assertions about classes Assertions about classes of transactions and events for the period under audit : a) Occurrence -events and transactions which have been recorde

Internal Audit., #quInternal Audit checklist for fixed assetsestion..

#quInternal Audit checklist for fixed assetsestion..

Joint auditor, advantage and disadvantage of joint auditor?

advantage and disadvantage of joint auditor?

Ias 40 investment properties, IAS 40 Investment Properties Audit work ...

IAS 40 Investment Properties Audit work common to all kinds of land and building will be used to establish ownership, existence and price. IAS 40 requires such companies may a

Auditors responsibilities with regard to related parties, Auditors Responsi...

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

management functions and the audit, Describe the management system within ...

Describe the management system within your case study business. Assess the risk of fraud in this business, and suggest methods for detection Management system in this ca

Explain audit risk -identify factors- audit work-planning , You are the par...

You are the partner in charge of the audit of Drugs4U Ltd, a company which develops, manufactures and sells to the a trade market a wide range of drugs which promote healthy living

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