Techniques of obtaining evidence, Auditing

Assignment Help:

Techniques of Obtaining Evidence

ISA 500 mentions them as such:

  1. Inspection of documents or records,
  2. Inspection of tangible assets,
  3. Observation,
  4. Inquiry,
  5. Confirmation,
  6. Recalculation,
  7. Analytical procedures
  8. Re-performance.

These can be further analyzed as follows that:

a)  The physical examination of tangible counting and assets them;

b) Confirmation. Here these should be in writing, external sources to be preferable to internal sources;

c) Examination of original documents.  So vouching should be carried out which is comparing unique documents along with entries in the books;

d) Re-computation: This includes carrying out additions, summaries, extracting balances, calculations, rechecking postings.

e) Scanning: This is required in seeking the extra-ordinary or unusual item.  It includes just flipping with the documents and records looking out for the odd items.

f) Inquiry: This is asking questions of knowledgeable persons along within and outside the entity.  It is a valid and essential technique.  However auditors, prefer confirmation to oral answers.

g) Correlation: This is seeking consistency in the accounts and in the records that using evidence obtained in other areas to given an additional assurance in other areas.

h) Observation: Visual evidence is much more satisfactory therefore, observing a procedure being performed is the best possible confirmation.  However, observation has the draw back that you can only rely on it at the time you are observing.  You cannot be confident that the procedure is carried out which way all the time.


Related Discussions:- Techniques of obtaining evidence

Information in the fixed assets register, Information in the Fixed Assets R...

Information in the Fixed Assets Register The register can obtain the following information: i. Fixed asset number. ii. The cost and the date of purchase. iii. Descrip

Joint auditing, what is the role of a joint auditor

what is the role of a joint auditor

Audit evidence, list four assertions that relate to account balances

list four assertions that relate to account balances

Post balance sheet events, Post Balance Sheet Events Post balance shee...

Post Balance Sheet Events Post balance sheet events occupy a very significant place in auditing and hence there is generally a program of work which is carried out in this are

Audits and inspections, Q. What are the different methods available for col...

Q. What are the different methods available for collection and analyzing audit data? Q. Describe and explain common audit findings in the fields of: a. Informed consent proce

Higher normal risk, Higher  normal risk Several audit assignments invo...

Higher  normal risk Several audit assignments involve high audit risk and usually in any client there will always be at least one high risk area.  Indications that an audit has

Techniques of obtaining evidence, Techniques of Obtaining Evidence ISA...

Techniques of Obtaining Evidence ISA 500 mentions them as such: Inspection of documents or records, Inspection of tangible assets, Observation, Inq

Auditing, YvesLaurent has just been put in charge of the BeautyNatural Inc....

YvesLaurent has just been put in charge of the BeautyNatural Inc. audit.BeautyNatural is a small, but growing retail chain of natural cosmetics stores. BeautyNatural needs to borro

Definition of auditing , Definition of Auditing According to Internatio...

Definition of Auditing According to International Standard on Auditing (ISA) objective and common principles governing an audit of financial statements, the purpose of a financ

Going concern considerations - audit process, Going Concern Considerations ...

Going Concern Considerations - Audit Process IAS 1 Presentation of Financial Statements knows the going related assumption as one of the fundamental assumptions that underlie

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