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

RISKS AND CONTROLS, oversee commission staff to ensure individuals are prop...

oversee commission staff to ensure individuals are properly trained and monitored probable risks, controls and audit tests

ACL Case 3, Sales are shipped FOB shipping point with credit terms n/45. Yo...

Sales are shipped FOB shipping point with credit terms n/45. You have verified that the last shipping number used in 2009 was 261,336 and that numbers were used in numerical order.

Preferred stock valuation, Preferred stock valuation 1. Features of pre...

Preferred stock valuation 1. Features of preferred stock (You may review what you've learned about preferred stock from TCA 221): a. Multiple classes in terms of convertibil

Role of accountant, Role of Accountant The Accountant's Role Every ...

Role of Accountant The Accountant's Role Every year a lawyer who such handles client's money is used to created to the Law Society of US a report through a qualified accoun

Briefing paper on the issues facing established audit firms, Case Study: ...

Case Study: You have commenced work as a graduate auditor with a well established audit firm. The firm has a wide client base, which includes some of the largest companies in t

Historic costs methods - long term contracts, Historic Costs Methods - Long...

Historic Costs Methods - Long Term Contracts You will notice such this exercise is completely dependent on the company estimating its further costs.  This is wherever the audi

Valuation - detailed audit of stock, Valuation - Detailed Audit of Stock ...

Valuation - Detailed Audit of Stock IAS 2 prescribes such stock be priced at the lower of price and net realizable price, It is up to the auditor to ensure that net realizable

Issues for finance leases, Issues for Finance Leases For the leases su...

Issues for Finance Leases For the leases such have been categorize as finance leases, a model uses to be checked for the following issues: (i) Check technique used to split

Auditing and assurance in australia, i need an assignment for auditing with...

i need an assignment for auditing with word count of 1750

Necessity of accountant, Necessity of Accountant The accountant is no...

Necessity of Accountant The accountant is not necessary To expand his enquiries beyond the information enclosed in the relevant documents as supplemented through such e

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