Page 25 - Auditing Standards

As of December 15, 2017
responses to inquiries is an integral part of the inquiry process. 9

Note: Inquiry of company personnel, by itself, does not provide sufficient audit evidence to reduce audit

risk to an appropriately low level for a relevant assertion or to support a conclusion about the effectiveness
of a control.

Confirmation

.18 A confirmation response represents a particular form of audit evidence obtained by the auditor from a
third party in accordance with PCAOB standards. 10

Recalculation

.19 Recalculation consists of checking the mathematical accuracy of documents or records. Recalculation
may be performed manually or electronically.

Reperformance

.20 Reperformance involves the independent execution of procedures or controls that were originally
performed by company personnel.

Analytical Procedures

.21 Analytical procedures consist of evaluations of financial information made by a study of plausible

relationships among both financial and nonfinancial data. Analytical procedures also encompass the
investigation of significant differences from expected amounts. 11

Selecting Items for Testing to Obtain Audit Evidence

.22 Designing substantive tests of details and tests of controls includes determining the means of
selecting items for testing from among the items included in an account or the occurrences of a control. The
auditor should determine the means of selecting items for testing to obtain evidence that, in combination with

other relevant evidence, is sufficient to meet the objective of the audit procedure. The alternative means of
selecting items for testing are:

Selecting all items;

Selecting specific items; and

Audit sampling.

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