Page 19 - PowerPoint Presentation

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

• Previaous 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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