What is considered sufficient audit evidence?

What is considered sufficient audit evidence?

Sufficient: Sufficiency is the measure of quantity. Audit evidence is sufficient when they are available in adequate quantity. An auditor applies different audit procedures to obtain sufficient audit evidence like test checking. Reliable: Evidence obtained by the auditor is persuasive rather than conclusive.

What are the 4 types of audit evidence?

What Are the Types of Audit Evidence?

• Physical examination.
• Confirmations.
• Documentary evidence.
• Analytical procedures.
• Oral evidence.
• Accounting system.
• Reperformance.
• Observatory evidence.

What types of audit evidence are considered most reliable?

Audit evidence is more reliable when it exists in documentary form, whether paper, electronic, or other medium (for example, a contempo- raneously written record of a meeting is more reliable than a subse- quent oral representation of the matters discussed). audit evidence provided by photocopies or facsimiles.

What is audit evidence?

Audit evidence consists of both information that supports and corroborates management’s assertions regarding the financial statements or internal control over financial reporting and information that contradicts such assertions.

What are the essentials of audit evidence?

(a) Sufficient: The audit evidence are said to be sufficient when they are in adequate quantity. The audit evidence enables the auditor to form an opinion on the financial information. Sufficient evidence can be obtained by test checking instead of 100% checking.

What constitutes sufficient appropriate evidence?

Overview. Sufficient appropriate audit evidence must be obtained to provide a reasonable basis to support the conclusion(s) expressed in an assurance engagement report. the determination of the relevance and reliability of audit evidence.

Which of the following is type of audit evidence?

The auditor can obtain different types of audit evidence, including physical examination, documentation, analytical procedure, observations, confirmations, inquiries, etc.

What are sources of audit evidence?

5 common sources of substantive audit evidence

• Confirmation letters. Auditors send letters to third parties, such as customers or vendors, asking them to verify amounts recorded in the company’s books.
• Original source documents.
• Physical observations.
• Comparisons to external market data.
• Recalculations.

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

The most common type of evidence is simply asking the client and employees questions. This is known as inquiries of the client. Inquiries are the most common because they are the easiest type of evidence to obtain and they can result in direct answers to the questions the audit is attempting to ask.

What are the elements of audit evidence?

Sufficient appropriate audit evidence They can include inspection, observation, confirmation, recalculation, reperformance and analytical procedures, in addition to inquiry, as the latter does not normally provide sufficient audit evidence on its own.

What are the 4 characteristics of evidence?

It is, in short, relevant, verifiable, representative, and actionable. It is important to note that evidence per se does not lead to confirmations of value and quality.

How do you get sufficient 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.

How would you obtain sufficient and appropriate audit evidence?

Sufficient appropriate audit evidence is obtained by applying appropriate audit procedures keeping the risk assessment in consideration. It is up to the auditor to decide whether a certain audit procedure is appropriate enough to obtain sufficient appropriate evidence in a particular situation.

Which of the following is a type of audit evidence quizlet?

Classify the item according to the eight types of audit evidence: (1) physical examination, (2) confirmation, (3) inspection, (4) analytical procedures, (5) inquiries of the client, (6) recalculation, (7) reperformance, and (8) observation. Count a sample of inventory items and record the amount in the audit files.

What is nature of audit evidence?

The nature of audit evidence refers to the form of the evidence you’re looking at during the audit. It should include all accounting documents and may include other available information, such as the minutes of the board of directors meetings.

What are essential of good audit evidence?

Which of the following should be considered an audit procedure for obtaining evidence?

Which of the following types of audit evidence is the most persuasive?

Which of the following types of audit evidence is the most persuasive? Bank statements obtained from the client.

What is source of audit evidence?

Internal sources of audit evidence include a company’s documented processes, policy documents, accounting records, invoices, system logs, and reports. External sources of audit evidence can include information from banks, debtors, suppliers, stock exchanges, and the Internal Revenue Service.

Which of the following is considered the best audit procedure to obtain evidence regarding the collectability of a receivable?

Trace a sample of postings from the sales journal to the notes receivable ledger. Which of the following audit procedures provides the best evidence about the collectability of notes receivable? a) Examination of cash receipts records to determine promptness of interest and principal payments.