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In: Accounting

Audit evidence is often available only in electronic form, and auditors must evaluate how this affects...

Audit evidence is often available only in electronic form, and auditors must evaluate how this affects their ability to gather sufficient, appropriate evidence. Discuss what measures an auditor will take to insure sufficient evidence is gathered and that the evidence is reliable.

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Expert Solution

Measures to ensure that sufficient evidence is gathered and it is reliable are as follows:

  • Checking that the financial statements are prepared in accordances with the applicable laws and regulations
  • All the statements are in accordance with the financial reporting policies and standards on auditing and accounting and those are followed consistently throughout the year in such preparation
  • Reviewing and testing the internal controls, quality and persons engaged team
  • Inquiring the management and other internal teams
  • The further procedures when the sufficient understanding cannot be obtained from the organization such as using the expert work, physical visit if necessary.
  • Observing the classification, completeness, and accuracy of few sample transactions and events recorded in the books of material amounts
  • Using the Audit samplings and ABC analysis and other methods to assure the reliable evidence is gathered
  • Analytical procedures such as compared with the previous year reports, overall industry performances etc

ekkarill92 answered 1 year ago
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