Question

 

1. Compare audit evidence versus evidence used by other professions

2. Why is important the audit documentation

3. Why e-commerce affects audit evidence.

Answer 1

1. Audit evidence versus evidence used by other profession:

Sufficient and appropriate audit evidence provide reasonable assurance whether financial statements are free from material misstatement whereas evidence used by other profession provide absolute assurance whether there is any material discrepancy or not.

Audit evidence provide basis to auditor to form an opinion whereas evidence used by other profession provide the professional with basis to make a conclusion

2.Importance of audit documentation:

a) Helps to establish accountability of the work performed

b)Audit documentation is proof that audit has been conducted in the manner documented.

(c) It helps in the future audit to perform various audit tasks

(d) Assist the audit team to plan and perform the audit

(e) It provide the principal support to auditor to form audit opinion

3.Ecommerce affects the audit evidence as follows:

(a) Most of the online transactions happen without the use of input used result in change in audit trial

(b) Client's storage capacity may restrict the ampunt of historical data retained online nd readily accessible to auditor

(c) Certain entries which are generated automatic may not have audit evidence

(d) The transaction processed may not produce printed hardcopy output