Concepts of Audit Evidence
The information used by the auditor in arriving
at the conclusions on which the audit opinion is
based
What is Audit Evidence?
Checking the mathematical accuracy of
documents or records
What is Recalculation?
The auditor’s independent execution of
procedures or controls that were originally
performed by company personnel.
What is Reperformance?
The entity holds or controls the rights to
assets, and liabilities are the obligations of
the entity.
What is Rights and
Obligations?
All transactions and events that
should have been recorded have
been recorded
What is Completeness?
Is a measure of the quality of
audit evidence by determining its relevance and reliability.
What is Appropriateness of Audit Evidence?
Physical examination of a tangible asset.
What is Inspection of tangible assets?
Judgmentally review accounting data to
identify significant or unusual items to test.
What is Scanning?
All transactions and events that
should have been recorded have
been properly approved.
What is Authorization?
Transactions and events that have
been recorded have occurred and
pertain to the entity.
What is Occurrence/Existence?
Is the measure of the quantity of
audit evidence
What is Sufficiency of Audit Evidence?
The process of watching a process or
procedure being performed by others.
What is Observation?
Selecting a source document and then following it into the journal or ledger.
What is Tracing?
Transactions and events have been
recorded in the correct accounting period.
What is Cutoff?
Transactions and events have been
recorded in the proper accounts.
What is Classification?
Refers to the form or type of information such as general and subsidiary ledger or work sheets and spreadsheets.
What is Nature of Audit Evidence?
Audit evidence obtained by the auditor as a
direct written response to the auditor from a
third party.
What is Confirmation?
Selecting an item for testing from the accounting journals or ledgers and then examining the underlying source document.
What is Vouching?
Amounts and other data relating to
recorded transactions and events have
been recorded appropriately, and related
disclosures have been appropriately
measured and described.
What is Accuracy/Valuation
and Allocation?
Transactions and events are appropriately
aggregated or disaggregated and clearly
described, and related disclosures are
relevant and understandable.
What is Presentation?
Developing an understanding of the types of evidence available and the relative reliability of available evidence.
What is Evaluation of Audit Evidence?
Seeking information of knowledgeable persons within the entity or outside the entity.
What is Inquiry?
Evaluations of financial information made by
a study of plausible relationships among both
financial and nonfinancial data.
What is Analytical Procedures?
Used to assist the auditor to better understand
the business and to plan the nature, timing, and
extent of audit procedures.
What is Risk Assessment Procedures?
Used to obtain evidential matter about particular
assertions related to account balances or classes
of transactions.
What is Substantive Analytical Procedures?