Quick Answer: What Is Audit Evidence And Examples?

What are the 8 types of audit evidence?

Terms in this set (8)physical examination.

inspection or count or tangible assets.

confirmation.

receipt of written or oral repsonse from independent 3rd party, verifying accuracy of info requested by auditor.

inspection (documentation) …

recalculation.

client inquiries.

re-performance.

analytical procedures.

observation..

What is audit procedure?

Audit procedures are the steps that the auditors from an audit firm would carry out to acquire all the information related to the quality of the financial statements that a company has provided.

What are the sources of evidence?

Evidence is published across a variety of sources, including scientific or academic journals, books, conference proceedings, websites, and news reports. Academic publications in scientific journals are generally considered to be of higher quality due to the independent, peer-review process.

What is audit evidence and its importance?

Audit evidence is important because it is all the information that an auditor gathers to reach his audit opinion about an organization’s financial statements and/or internal control environment. … Audit evidence can be divided into internal and external sources.

What are the types of audit evidence?

Types of audit evidence:Financial statements.Accounting information.Bank accounts.Management Accounts.Fixed Assets Register.Payrolls Listing.Banks Statements.Bank confirmation.More items…

What is sufficient audit evidence?

Tracy, Jill Gilbert Welytok. The sufficiency of audit evidence is the amount or quantity of audit evidence. You determine the amount of audit evidence you need by considering the risk of material misstatement and the overall quality of the evidence you receive.

What are the qualities of 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 are the four audit evidence decisions?

The auditors’ decisions on evidence accumulation can be broken down in to four sub decisions: Which audit procedure to use (Audit Procedure?) Which sample size to select for a given procedure (Sample Size?) Which items to select from population (Items??)

Which type of audit evidence is the most commonly used in an audit?

One of the most common types of evidence auditors use is documentation. Documentation includes a written or pictured document, such as an invoice, picture, check stub, policy, or memo, that addresses an aspect of the audit being tested.

What is meant by audit evidence?

Audit evidence is evidence obtained by auditors during a financial audit and recorded in the audit working papers. Auditors need audit evidence to see if a company has the correct information considering their financial transactions so a C.P.A. (Certified Public Accountant) can confirm their financial statements.

What are the sources of audit evidence?

Here’s a list of five common sources of “substantive evidence” that auditors gather to help them form an opinion regarding your financial statements.Confirmation letters. … Original source documents. … Physical observations. … Comparisons to external market data. … Recalculations.

What are the different types of audit procedures?

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

What is audit evidence and documentation?

Audit evidence refers to Information used by the auditor in arriving at the conclusions on which the auditor’s opinion is based. … Among other things, audit documentation includes records of the planning and performance of the work, the procedures performed, evidence obtained, and conclusions reached by the auditor.

What is the most reliable audit evidence?

Audit evidence obtained directly by the auditor (for example, observation of the application of a control) is more reliable than audit evidence obtained indirectly or by inference (for example, inquiry about the application of a control).

How do you gather audit evidence?

Techniques for Gathering Audit EvidenceUncontrolled documents. Look around for “bandit documents” posted on walls, machines, and desks. … Product outside the normal flow. … Measuring instruments. … Housekeeping and organization. … Product identification. … Improvised fixes and repairs. … Informal record keeping.