RSM323H1 Chapter Notes -Audit Evidence, Audit Risk, Analytical Review
Document Summary
Learning objectives: outline six general types of audit techniques for gathering evidence. Chapter overview: evidence-gathering audit procedures, business information sources and methods, sufficient appropriate evidence in auditing, audit plan and detailed programs, the planning document, audit working papers. General audit procedures: auditors set out six basic types of evidence, and use six general techniques to gather it. Performing independent calculations or recalculating the client"s calculations. Computation addresses existence and valuation for calculated amounts. Reperformance is applied in control testing, the auditor independently executes an internal control procedure: observation: Looking at the application of policy or procedures by others. Reliable evidence as to performance at the time of observation. Produces a general awareness of events: external confirmation: Consists of (written) enquiry to verify accounting records. Confirmation with independent parties is used widely for a variety of transactions and balances. Confirmation can produce evidence regarding existence, ownership, valuation and cut- off: confirmation procedures:
