Question

The use of audit software has increased dramatically in recent years. Software is now used to fulfill administrative functions on the audit environment, to document audit work, and to conduct data analysis.

How has the use of this software aided in better generation of audit evidence? What is continuous monitoring

Answer 1

The auditors uses electronic audit software packages for generating various audit programs that assists the auditor to address risks and other audit planning considerations and choose appropriate audit procedures. The audit standards require the auditor for the accumulation of appropriate sufficient evidence for supporting the opinion issued. The two main determinants of the persuasiveness of audit evidence are appropriateness and sufficiency. The evidence appropriateness is a measure of the quality of evidence, meaning its reliability and relevance in meeting audit objectives for classes of account balances, transactions, and related disclosures. When evidence is considered highly appropriate, it is extremely helpful in persuading the auditor that financial statements are appropriate and stated. In addition to appropriateness, there need to be the sufficiency of evidence. The quantity of evidence obtained will determine the sufficiency which is primarily measured by the sample size the auditor selects. Additionally, the internal auditing software helps auditor by enabling continuous monitoring. It provides latest technology and interfaces to detect compliance and risk issues associated with operational and financial environment