What kind of evidence does ISA 580 suggest that the auditor get from management?

The auditor can obtain audit evidence of management’s acknowledgment of such responsibility and approval from relevant minutes of meetings of those charged with governance or by obtaining a written representation from management or a signed copy of the financial statements.

What are the two characteristics of audit evidence according to ISA 500?

“The measure of the quality of audit evidence; that is, its relevance and its reliability in providing support for the conclusions on which the auditor’s opinion is based.” Relevance means whether the audit evidence that is obtained relates to the assertions of the item being tested.

What is audit evidence and how can it be obtained?

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.

Why do auditors do audit sampling?

Audit sampling enables auditors to make conclusions and express fair opinions based on predetermined objectives without having to check all of the items within financial statements. The auditors will only verify selected items, and through sampling, can infer their opinion on the entire population of items.

How do auditors obtain 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 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 is the most reliable audit evidence?

Audit evidence provided by original documents is more reliable than audit evidence provided by photocopies or facsimiles, or documents that have been filmed, digitised or otherwise transformed into electronic form.

How do you gather audit evidence?

Procedures for Gathering Audit Evidence

1. 1) Documentation.
2. 2) Inspection.
3. 3) Observation.
4. 4) External Confirmation.
5. 5) Recalculation.
6. 6) Re-performance.
7. 7) Physical examination.
8. 8) Third-party confirmation.

How do you select a sample for an audit?

In devising their samples, auditors must ensure that the sample selected is representative of the population….Monetary unit sampling

1. determine a sample size.
2. select the sample.
3. perform the audit procedures.
4. evaluate the results and arriving at a conclusion about the population.

What is the strongest form of audit evidence?

Auditors test accounts receivable existence through both confirmation and examination of documentation. Customer confirmation, because it is from a third-party, is considered to be the strongest form of audit evidence for accounts receivable. However, the company’s customers often do not return requests for confirmation.

What are the different types of audit evidence?

Physical Examination. Physical examination is where the audit inspects the asset physically and counts them whenever required.

When is audit evidence considered sufficient?

View Full Document Audit evidence is usually considered sufficient when there is enough quantity to afford a reasonable basis for an opinion on financial statements.

What is an 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.