Respond to the following statements by evaluating the sufficiency of their explanation. Did they include all of the key components necessary to understand documentation and evidence? Did they explain something particularly well, or perhaps miss major points?

a. When I explain to a friend what I have learned about documentation and evidence I can tell them that audit documentation is a working document used to compile the information and audit evidence is the information to compile the auditors opinion. For example, an audit documentation can be the checklist used to conduct the audit. Then the audit evidence is all the items used during the audit to come to a conclusion.

b. Documentation and evidence are crucial when it comes to accounting or auditing.

Audit documentation is a record of the audit procedures, evidence, and conclusions that were found by the auditor. Essentially it consists of all information that is needed to complete and support an audit report. Documentation is typically known as work papers that layout the evidence of how the audit was designed and executed. CPAs design their own rules for audit documentations; the rules should meet all necessary requirements of GAAP.

Audit evidence is the information collected specially to support the auditors' conclusions of management's claims and specifies the foundation for the auditors' opinion. Evidence can endorse or dispute the statements it was initially intended to support. Evidence supplies verification that the auditing process were correctly executed by the auditor. All the documentation acquired and implemented by the auditors throughout the engagement is evidence.

Answer rating: 100% (QA)

a Just like you have stated in your post it is true documentation is a working document that is prim... View the full answer