Quick Answer: Which Type Of Audit Evidence Is The Most Commonly Used In An Audit?

What is the types of audit evidence?

Procedures to obtain audit evidence: Such procedures include audit inquiry, audit observation, audit inspection, analytical procedure, audit recalculation, Audit confirmation, as well as re-performance.

Audit Inspection: Auditor inspect on certain documents or evidence that related to financial transaction or event..

What is Reperformance audit evidence?

39 Reperformance is the auditor’s independent execution of procedures or controls that were originally performed as part of the entity’s internal control, either manually or through the use of CAATs, for example, reperforming the aging of accounts receivable.

What is primary audit evidence?

Primary Audit Evidence It’s the type of audit evidence gathered from within the company from the accounting records and the ICS. Such evidence may be biased if the transactions do not have adequate source documents or when the ICS is weak. 2.

What are the 8 types of audit evidence?

Terms in this set (8)physical examination. inspection or count or tangible assets. … confirmation. receipt of written or oral repsonse from independent 3rd party, verifying accuracy of info requested by auditor. … inspection (documentation) … recalculation. … client inquiries. … re-performance. … analytical procedures. … observation.

What is reliable audit evidence?

Reliability. The reliability of evidence depends on the nature and source of the evidence and the circumstances under which it is obtained. … Evidence obtained directly by the auditor is more reliable than evidence obtained indirectly.

What is permanent and current audit file?

In the case of recurring audits, some working paper files may be classified as permanent audit files which are updated currently with information of continuing importance to succeeding audit, as distinct from current audit files which contain information relating primarily to the audit of a single period.

What is meant by 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. (Certified Public Accountant) can confirm their financial statements.

What are the 4 types of audit reports?

The four types of auditor opinions are: Unqualified opinion-clean report. Qualified opinion-qualified report. Disclaimer of opinion-disclaimer report.

What is the most reliable audit evidence?

Audit evidence obtained directly by the auditor (for example, observation of the application of a control) is more reliable than audit evidence obtained indirectly or by inference (for example, inquiry about the application of a control).

What are the sources of audit evidence?

Here’s a list of five common sources of “substantive evidence” that auditors gather to help them form an opinion regarding your financial statements.Confirmation letters. … Original source documents. … Physical observations. … Comparisons to external market data. … Recalculations.

How do you evaluate audit evidence?

While you’re evaluating the evidence, you use two methods to help you determine whether it’s sufficient and appropriate: being thorough and being unbiased. Two other factors are key when evaluating audit evidence: exercising skepticism and asking for ideas from other audit team members.

What is persuasiveness of audit evidence?

B. Persuasiveness of Audit Evidence. Audit evidence is any information used by the auditor to determine whether the information being audited is stated in accordance with established criteria. Two determinants of persuasiveness of evidence are: Competence – the degree to which evidence can be considered trustworthy.

What is audit evidence and examples?

Auditing evidence is the information collected by an auditor to ascertain the accuracy and compliance of a company’s financial statements. … Examples of auditing evidence include bank accounts, management accounts, payrolls, bank statements, invoices, and receipts.

What are the methods of obtaining 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 the 7 audit assertions?

These assertions are as follows:Accuracy. All of the information contained within the financial statements has been accurately recorded.Completeness. … Cut-off. … Existence. … Rights and obligations. … Understandability. … Valuation.