Page 85 - Microsoft Word - 00 IWB ACCA F7.docx
P. 85
Evidence
Example 1
Sources of audit evidence
The auditor of Pyrenees Co is testing the non-current asset balance in the
financial statements. To do this the auditor can obtain evidence from a variety
of sources:
Auditor generated: a proof in total of the depreciation charge can be
performed to assess whether the charge appears reasonable.
Third party: a valuation report can be obtained from an auditor’s expert
confirming the market value of land and buildings at the reporting date.
Client generated: the auditor will use the client’s non-current asset register as
a basis for testing individual assets, e.g. selecting assets to verify physical
existence.
81
