Auditing evidence is the information used by auditors in order to arrive at conclusions on which to base their opinions. This evidence is gathered during the audit process and used to support the auditor's opinion on the financial statements.
The types of evidence used by auditors include:
1. Physical evidence – this is tangible evidence that can be seen and examined, such as invoices, contracts, and other documents.
2. Testimonial evidence – this is evidence in the form of oral testimony from people with firsthand knowledge of the facts, such as employees or customers.
3. Analytical evidence – this is evidence that is gleaned from an analysis of financial data, such as ratios or trends.
4. Inferential evidence – this is evidence that is based on the auditor's experience and judgment, such as when there is no direct evidence available but the auditor is able to make an educated guess based on similar situations.
What type of audit evidence would be used? There are four main types of audit evidence:
1. Physical evidence – This includes things like documents, contracts, invoices, receipts, and other physical items that provide evidence of transactions.
2. Testimonial evidence – This includes things like sworn statements, affidavits, and depositions from people with first-hand knowledge of the transactions in question.
3. Analytical evidence – This includes things like financial statements, trend analysis, and other data that can be used to draw conclusions about the transactions in question.
4. Experimental evidence – This includes things like test results, simulations, and other types of data that can be used to verify the accuracy of the other three types of evidence. What are the 7 assertions? The seven assertions are:
1. Existence
2. Rights and obligations
3. Valuation or allocation
4. Presentation and disclosure
5. Completeness
6. Accuracy and valuation
7. Consistency
What is the important audit technique?
The most important audit technique is to carefully review the financial statements of the company being audited. This includes reviewing the balance sheet, income statement, and statement of cash flows. The auditor should also review any accompanying footnotes and disclosures. What is internal audit evidence? Internal audit evidence is the documentation that internal auditors use to support their assertions. This documentation includes, but is not limited to, financial statements, accounting records, and supporting documentation such as invoices and canceled checks. Internal audit evidence also includes non-financial information, such as employee interviews and observations of work processes.
What is primary audit evidence?
Primary audit evidence is information that is gathered by the auditor during the course of an audit. This information is used to determine whether the financial statements of an organization are free from material misstatement.
There are three types of primary audit evidence:
1. Physical evidence – This type of evidence includes documents and records that support the transactions that have been recorded in the financial statements. For example, invoices and delivery documents would be considered as physical evidence.
2. Testimonial evidence – This type of evidence is given by individuals who have knowledge about the transactions that have been recorded in the financial statements. For example, the auditor may speak to the organization’s employees or suppliers to obtain testimonial evidence.
3. Analytical evidence – This type of evidence is based on the auditor’s analysis of the financial statements. For example, the auditor may compare the current year’s financial statements with the previous year’s financial statements to look for trends.