AuditEvidence(英文版)(ppt34页)课件.ppt

Audit Evidence Chapter 7 Audit Evidence Decisions Audit Program Persuasiveness of Evidence Competence Competence of Evidence Hierarchy Direct knowledge of auditor - highest source of evidence External evidence Obtained directly from outside the client Arms length transactions Documents never go to the client. External-internal is material that originated outside the client but is supplied by the client. Internal evidence is documentation from the client- produced, stored and circulated. Verbal and written representation of client. Should be corroborated by other evidence. General audit procedures for gathering evidence R - Recalculation O - Observation C - Confirmation V - Verbal inquiry E - Examination of documents S - Scanning A - Analytical Procedures Recalculation re-performs the calculation of an audit assertion such as depreciation, pension liability, actuarial reserves, bad debts and product liabilities. Helps to prove the existence and valuation assertions. Physical observation Provides evidence of existence. Has to be a tangible asset such as plant, property, inventories, stock certificates, bonds, debt agreements. Confirmations From outside sources by direct correspondence. Evidence for the existence and ownership and valuation. Such as: Bank account balances, accounts receivable balances, notes payable, lessors for lease terms etc. Positive/negative confirmation requests. Sending Confirmations Be sent on client letterhead and signed by a client officer Careful of client addresses for authenticity Request information the recipient can provide Mailed by the audit firm to maintain control Responses should be mailed directly to the auditor. Verbal Inquiries Of client can be used as evidence but it is not persuasive alone. Other evidence corroborating the inquiry must be obtained as well. Examination of Documents Examples: bank statements, canceled checks, contracts, vendor invoices, titles and others Can provide evidence for all five assertions. Do