Page 19 - PowerPoint Presentation
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GENERAL PRINCILES OF AUDITING
Audit Evidence (Continued…)
• How do I know whether or not sufficient appropriate audit
evidence has been obtained?
• Inherent Risk (the high the risk, the more auditors will need to
cover their backs)
• Materiality – material accounts get “audited more”
• Previous Experience – prior knowledge assist the auditor on where
to focus his/her attention
• Results of audit procedures already performed – red flags…!
• Source and reliability of info – if less reliable evidence exists,
auditor may be forced to gather more evidence from a number of
less reliable sources.
• Persuasiveness of audit evidence – evidence gathered in one
section which is supported/ corroborated by evidence from another
section will be more persuasive than had the evidence
contradicted itself.
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CharterQuest
