6.1 Audit evidence considerations (a) Discuss how analytical procedures can be used as substantive audit procedures to provide audit evidence. Illustrate your answer with an example. (b) (5 marks) ISA 500 Audit evidence requires auditors to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base their audit opinion. Discuss the different sources of evidence available to auditors and assess their relative appropriateness. (5 marks) (Total=10 marks) 6.2 Internal control systems An understanding of internal control assists the auditor in identifying potential misstatements and factors that affect the risk of material misstatements, and in designing the nature, timing and extent of further audit procedure. (a) Explain the limitations of internal control systems (4 marks) One method of recording an audit client's accounting and internal control system is using narrative notes: (b) Describe two advantages and two disadvantages of using narrative notes to document accounting and control systems. (4 marks) (c) Briefly describe two alternative methods of documenting accounting and control systems (2 marks) (Total=10 marks)