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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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