Quick Answer: What Is Meant By Audit Evidence?

What is Reperformance audit evidence?

Reperformance.

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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 audit process?

Auditing is defined as the on-site verification activity, such as inspection or examination, of a process or quality system, to ensure compliance to requirements. An audit can apply to an entire organization or might be specific to a function, process, or production step.

What are the sources of evidence?

Evidence is published across a variety of sources, including scientific or academic journals, books, conference proceedings, websites, and news reports. Academic publications in scientific journals are generally considered to be of higher quality due to the independent, peer-review process.

Which type of audit evidence is the most commonly used in an audit?

One of the most common types of evidence auditors use is documentation. Documentation includes a written or pictured document, such as an invoice, picture, check stub, policy, or memo, that addresses an aspect of the audit being tested.

What is audit evidence and its importance?

FAQs. Audit evidence is important because it is all the information that an auditor gathers to reach his audit opinion about an organization’s financial statements and/or internal control environment. … Audit evidence can be divided into internal and external sources.

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 are the types of audit tests?

Auditors use one or more of five different test methods, including inquiry, observation, examination, re-performance, and computer-assisted audit techniques (CAAT), which involves testing large volumes of data using computer algorithms.

What are the main procedures for obtaining audit evidence?

Typically, there are five audit procedures that normally use by auditors to obtain audit evidence. Those five audit procedures include Analytical review, inquiry, observation, inspection, and recalculation.

What is appropriate audit evidence?

Appropriateness is the measure of the quality of audit evidence, i.e., its relevance and reliability. To be appropriate, audit evidence must be both relevant and reliable in providing support for the conclusions on which the auditor’s opinion is based.

What is audit evidence and documentation?

Audit evidence refers to Information used by the auditor in arriving at the conclusions on which the auditor’s opinion is based. … Among other things, audit documentation includes records of the planning and performance of the work, the procedures performed, evidence obtained, and conclusions reached by the auditor.

What are examples of audit evidence?

Examples of auditing evidence include bank accounts, management accounts, payrolls, bank statements, invoices, and receipts. Good auditing evidence should be sufficient, reliable, provided from an appropriate source, and relevant to the audit at hand.

Why the auditor needs 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 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.

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).