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8 Cards in this Set
- Front
- Back
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what is audit evidence? |
GAAS- info used by auditor to reach conclusions, accounting records and other PCAOB-all the info used, including that supporting and contradicting mgmt assertions |
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4 audit evidence decisions |
1. what audit procedures to use 2. sample size to select 3. which items to select from population 4. when to perform procedures |
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determinants of persuasiveness of evidence |
appropriateness- measure of relevance & reliability. can only be improved by selecting more relevant procedures, not by increasing sample size sufficiency- quantity of evidence obtained |
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types of audit evidence |
1. physical examination- of physical asset 2. confirmation 3. inspection- of documents 4. analytical procedures 5. inquiries of the client 6. recalculation 7. reperformance- test of accounting procedures 8. observation |
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6 characteristics of reliable evidence |
1. independence of provider 2. effectiveness of client's internal controls 3. auditor's direct knowledge 4. qualifications of person providing evidence 5. degree of objectivity 6. timeliness |
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effects of technology on audits |
- evidence increasingly in electronic form - auditor must eval how effects ability to get evid. - effects audit strategy - use computers to read/examine evidence |
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auditor must document |
procedures performed evidence obtained conclusions reached who performed work, date completed, who reviewed, date reviewed |
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final audit documentation required |
GAAS- 60 days after auditor's report released to PCAOB- 45 days after auditor's report released
can add information to files, but cannot remove audit documentation after doc completion date |
