What is considered sufficient audit evidence?

Sufficient audit evidence is the context that refers to the quantity or number of audit evidence. Likewise, the quantity of audit evidence will be influenced by the risk of material misstatement of financial statements and the quality of evidence obtained.

How do you obtain sufficient appropriate audit evidence?

Appropriateness is the measure of the quality of audit evidence, i.e., its relevance and reliability. To be appropriate, audit evidence must be both relevant and reliable in providing support for the conclusions on which the auditor’s opinion is based.

What is appropriate and sufficient evidence?

Sufficient audit evidence here mainly refers to the number of audit evidence. And the appropriate here refers to the quality of evidence. Sufficient here can refer to the number of sampling they select, the procedures they use, as well as documents that they obtain.

What are the procedures for obtaining audit evidence?

Audit procedures to obtain audit evidence can include inspection, observation, confirmation, recalculation, reperformance and analytical procedures, often in some combination, in addition to inquiry.

What are the 8 types of audit evidence?

Types of Audit Evidence

Physical examination. Physical examination consists of auditors physically verifying the existence of various assets.
Confirmations.
Documentary evidence. Documentation is also a crucial part of any audit.
Analytical procedures.
Oral evidence.
Accounting system.
Reperformance.
Observatory evidence.

What is audit evidence and examples?

Auditing evidence is the information collected by an auditor to ascertain the accuracy and compliance of a company’s financial statements. Examples of auditing evidence include bank accounts, management accounts, payrolls, bank statements, invoices, and receipts.

What are examples of audit procedures?

Typically, five types of audit procedures normally use by auditors to obtain audit evidence. Those five audit procedures include Analytical review, inquiry, observation, inspection, and recalculation.

What is the strongest form of audit evidence?

blank positive confirm
The strongest form of confirmation is the blank positive confirm. A blank positive confirm asks the third-party to report the client’s asset balance back to the auditor without the prompt of the company’s recorded balance.

What are the examples of audit evidence?

Examples of auditing evidence include bank accounts, management accounts, payrolls, bank statements, invoices, and receipts. Good auditing evidence should be sufficient, reliable, provided from an appropriate source, and relevant to the audit at hand.

What does it mean by sufficient appropriate audit evidence?

Sufficient appropriate audit evidence is said to have been obtained if the audit risk is reduced by the auditor (through application of audit procedures) to such level that enables the auditor to draw reasonable inferences on which ultimately auditor’s opinion will be based.

What are the concepts of audit assertions and procedures?

Audit assertions- what the auditor gathers evidence to support. Audit evidence- it must be sufficient and competent. Audit procedures- how the auditor gathers the evidence. The Concept of Audit Assertions When management prepares the financial statements, they make five assertions about each line in the financial statements.

Which is more reliable audit evidence or inference?

• Audit evidence obtained directly by the auditor (for example, observa- tion of the application of a control) is more reliable than audit evidence obtained indirectly or by inference (for example, inquiry about the ap- plication of a control).

What are the appropriate procedures for an audit?

For each audit done in accordance with GAAS, the auditor must obtain an understanding of internal control. The appropriate procedures are: Make inquiries. Inspect manuals and other documentation. Observe the client. Tests of controls The auditor may decide to test controls.

What is considered sufficient audit evidence? Sufficient audit evidence is the context that refers to the quantity or number of audit evidence. Likewise, the quantity of audit evidence will be influenced by the risk of material misstatement of financial statements and the quality of evidence obtained. How do you obtain sufficient appropriate audit evidence? Appropriateness…