Audit evidence is the information gathered and used by the auditor in arriving at the conclusions...

 

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Audit evidence is the information gathered and used by the auditor in arriving at the conclusions based on which the audit opinion will be made. It includes the information contained in the accounting records underlying the financial statements and other information. An auditor must gather sufficient and appropriate audit evidence and test them to make to arrive at an audit opinion. In gathering evidence to support his assertions, the auditor is often confronted with two issues; • What evidence will be relevant to assess an assertion with greater reliability? • How much evidence is to be obtained? There are some common ways of obtaining sufficient appropriate audit evidence to support the conclusion on the true and fair view of the financial statements which include Inspection, Observation, Enquiry, Confirmation, Computation, Analytical Review Procedures, and Independent Execution. Assume that you are an auditor of a company. Explain any FOUR appropriate methods of obtaining audit evidence that you will be using when auditing the financial statements of the company. You are required to: (i.) Mention the name and small description of the company you will be auditing. (2 Mark) (ii.) List the methods of collecting evidence along with the element of the financial statement that (2 Mark) (i.) Explain in detail the procedure adopted for will be audited. collecting the audit evidence that you have mentioned about question no. (ii.) with proper justification. Marks) (6 Audit evidence is the information gathered and used by the auditor in arriving at the conclusions based on which the audit opinion will be made. It includes the information contained in the accounting records underlying the financial statements and other information. An auditor must gather sufficient and appropriate audit evidence and test them to make to arrive at an audit opinion. In gathering evidence to support his assertions, the auditor is often confronted with two issues; • What evidence will be relevant to assess an assertion with greater reliability? • How much evidence is to be obtained? There are some common ways of obtaining sufficient appropriate audit evidence to support the conclusion on the true and fair view of the financial statements which include Inspection, Observation, Enquiry, Confirmation, Computation, Analytical Review Procedures, and Independent Execution. Assume that you are an auditor of a company. Explain any FOUR appropriate methods of obtaining audit evidence that you will be using when auditing the financial statements of the company. You are required to: (i.) Mention the name and small description of the company you will be auditing. (2 Mark) (ii.) List the methods of collecting evidence along with the element of the financial statement that (2 Mark) (i.) Explain in detail the procedure adopted for will be audited. collecting the audit evidence that you have mentioned about question no. (ii.) with proper justification. Marks) (6