There are a number of different methods of obtaining audit evidence. Methods include:

(i) analytical procedures;

(ii) audit sampling:

(iii) tests of controls:

(iv) detailed testing of transactions and balances.

These methods overlap and may be used for different purposes during an audit of financial statements.

Required:

(a) Explain the advantages and disadvantages of each of the methods of evidence-gathering listed above. NB: You are not required to describe the methods listed above.

(b) Describe the relationship between the four methods of evidence-gathering described above.