1. Audit evidence is often considered to be the “proof” auditor’s need in order to render an unqualified opinion. Audit evidence comes from extremely compelling documentation to evidence which is questionable at best. using your current position or a previous job, discuss some audit evidence which you would consider to be excellent documentation for an audit, and audit evidence that may be “less than perfect”.

2. Using the internet, find a website that has financial ratios (metrics) that can be used for audit planning.

Identify two key audit issues that may occur at your current employer or a previous one. Then, using financial ratio analysis, show us how the financial ratios could be used to prepare for audit planning purposes and also for identifying key audit issues. For instance, inventory ratios can be used for specific audit problems that may occur.