Forms of evidence, Auditing

Assignment Help:

Forms of Evidence

  • Observation, is mostly witnessing internal book-keeping procedures and system control. It involves attendance at wages pay out. Observation of stock-take, opening of receipting and mail and issuing procedures on the stores warehouse.
  • Inspection: examining of physical assets to confirm their condition and their existence such an aid in determining their significance for accounts purposes. Perhaps it includes examining the records to ensure which internal control procedures have been carried out and book-keeping.
  • Testimony from independent third parties. These are obtaining bank letters, debtor's circulation, lawyer's letters etc.
  • Review of authoritative documents: like as e.g title deeds, loan and share certificates, contract, leases, supplier's invoices, , internal sales invoices and minutes of board meetings.
  • Testimony from employees and management: This can be formal e.g. a letter of informal or representation for example replies to questions in questionnaires.
  • Satisfactory internal control: Whether the volume of transaction is large for example sales, wages and salaries, purchases, receipts and payments so this may be the most require evidence.
  • Calculations performed through the auditor: These provide him evidence of the correctness of many figures.
  • Review of post balance sheet events: In most cases the final audit is performed well after the finish of the year and although the present is a function of the future many assertions can be verified through reference to subsequent events.
  • Relationship evidence: Evidence confirming truth concern one item may confirm the truth regards another, for example verifying the expense rates confirms to several extent ownership and existence of the property.
  • Agreement along with expectation: comparison and computation of ratios and absolute magnitude along with those achieved in the past, through other companies, or else budgeted can assist in confirmation. Inconsistencies, odd else abnormal or unexpected items also that can alert the auditor.
  • External events: The auditor has to consider external events in requiring his knowledge of current events to assist him in the assessment of such company's accounts. Therefore he must consider prevailing economic circumstances which affect his client; so he must consider the political legislation and situation also.

Related Discussions:- Forms of evidence

Sundry debtors and loans, Sundry Debtors and Loans Sundry debtors and ...

Sundry Debtors and Loans Sundry debtors and loans are not generally material assets of companies another than those companies whose business is to create loans.  We shall cons

Examples of liabilities, Examples of Liabilities Examples of those lia...

Examples of Liabilities Examples of those liabilities are: a) Claims by employees for injury at work such should be covered through workman's compensation; b) Claims thr

Medical billing and coding, I need help with my homework for medical billin...

I need help with my homework for medical billing and coding can you help?

Business risk approach, Business Risk Approach This approach requires t...

Business Risk Approach This approach requires the auditor to determine what are the very important business risks which the client faces. This line of approach both helps the c

Accounting requirements - ias 40 investment properties, Accounting Requirem...

Accounting Requirements - IAS 40 Investment Properties IAS 40 prescribes the accounting treatment about investment property and related disclosure necessities.  Investment

What is an integrated audit, The modern integrated audit approach combines ...

The modern integrated audit approach combines elements of various traditional audit areas having financial, operational, and information technology.

Advanced Auditing Assigment, Are you able to help me my advanced auditing a...

Are you able to help me my advanced auditing assignment? It is Tuesday and it is due Friday. I have worked hard on it but I am struggling with it. Carmen

Financial reporting, what is the impact of judgemental sampling on the qual...

what is the impact of judgemental sampling on the quality of a financial report

Who is wal-mart''s external auditor?, Wal-Mart Locate the 2009 Form 10-K fo...

Wal-Mart Locate the 2009 Form 10-K for Wal-Mart in Appendix A and consider the following questions: 1. With respect to the report of the external auditors to "the Board of Directo

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd