The Auditing Standards Board established guidelines to assist auditors in evaluating the reliability of audit evidence....

The Auditing Standards Board established guidelines to assist auditors in evaluating the reliability of audit evidence. Discuss the criteria for the more reliable types of evidence and include an example for each.

Expert Solution

Auditors encounter various types of audit evidences during their course of conducting their audits. They need to evaluate each evidence by their professional judgement and ascertain whether such evidence could be used to substantiate their audit opinion. SOme of the ways Ausitors can evaulate the reliability of an Audit evidence are
a) Physical examination: Inspecting the count of a tangible asset physically
Ex: Asset counting, receipts verification
b) Confirmation : Confirming the receipt of a direct response from a third party.
Ex: Asking the third party to directly respond to the auditor instead of the client on a particular information.
c) Documentation : INspecting clients documents and records
d) Analytical procedures and recalculation : Using a set of proven procedures to evaluate the evidences.
Ex: Recalculating the depreciation charge, using stratified sampling techniques to evaluate vouchers and so on.

ekkarill92 answered 2 years ago

The audit documentation is another of the International Standards for Auditing and Auditing Evidence. What do...

The audit documentation is another of the International Standards for Auditing and Auditing Evidence. What do you know about the standards? Explain the details.

International Standards on Auditing to Auditors

Advantages and disadvantages of international standards on auditing to auditors Effects of ISAs being enforceable by law

Explain the relationships among auditing standards, types of evidence, and four audit evidence decisions.

Describe evidence requirements of auditing standards

AU-C 500 Audit Evidence, in the AICPA auditing standards refers to information produced by the entity....

AU-C 500 Audit Evidence, in the AICPA auditing standards refers to information produced by the entity. What must the auditor do to evaluate whether information provided by the client is sufficiently reliable? Provides some specific steps the auditor should do with respect to information supplied by the client.

Worthington Department Stores Auditing standards require the auditor to obtain sufficient appropriate audit evidence (AS 1105.04:...

Worthington Department Stores Auditing standards require the auditor to obtain sufficient appropriate audit evidence (AS 1105.04: Audit Evidence). The audit firm of Hepple & Ramsey was investigated for the audit of Worthington. Worthington is a large discount catalog department store chain. The company recently expanded from 6 to 43 stores by borrowing from several large financial institutions and from a public offering of common stock. A recent investigation has disclosed that Worthington materially overstated net income. This was accomplished by...

22. ISA 500 Audit evidence requires auditors to obtain sufficient appropriate audit evidence to be able...

22. ISA 500 Audit evidence requires auditors to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base their audit opinion. Discuss the different sources of evidence available to auditors and assess their relative appropriateness

Discuss the advantages and disadvantages of auditing standards to auditors and the consequences of them being...

Discuss the advantages and disadvantages of auditing standards to auditors and the consequences of them being enforceable by statute

Why do auditors use the audit risk model when planning an audit? If audit evidence was...

Why do auditors use the audit risk model when planning an audit? If audit evidence was gathered and evaluated and an auditor decides to increase the assessed level of control risk from that originally planned what would need to be done in order to achieve an overall audit risk level that is substantially the same as the planned audit risk level? Why would an auditor want to achieve this level?

Auditing Standards: According to Government Auditing Standards paragraphs and Government Performance Audit Textbook paragraphs below, why...

Auditing Standards: According to Government Auditing Standards paragraphs and Government Performance Audit Textbook paragraphs below, why do we need auditing standards in the opinion based on your observation? Government Auditing Standards Paragraphs: "Audits provide essential accountability and transparency over government programs. Given the current challenges facing governments and their programs, the oversight provided through auditing is more critical than ever. Government auditing provides the objective analysis and information needed to make the decisions necessary to help create a better future....

Question