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In: Accounting

The difference between existence and completeness assertions Types of audit evidence (8 of them), which is...

  1. The difference between existence and completeness assertions
  2. Types of audit evidence (8 of them), which is more reliable than the others
  3. What analytical procedures are and when are they used (important)
  4. To be  persuasive, the evidence should be _______, and  -------
  5. The use of specific evidence, e.g., when should we use physical examination or when should we use confirmation, etc.
  6. Types of confirmation, positive, negative, blank …

Solutions

Expert Solution

Difference between existence and completness assertions:

Existence means the transaction exists in the financial records of the company

Completness means the transaction is completely recorded and correctely recorded in the financial records of the company

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Different types of audit evidence are

Physical evidence

oral evidence

Accounting system

Documentary Evidence

Journal & Ledgers

Subsequent Events

Ratios

Computerized Records

The most reliable ones are documentary evidence

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analytical procedures means analysis of financial and non financial data

They are used in assisting the auditor to find out the reliability of the financial statements

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In case of few situation physical evidence is more important like cash balance , stock counting

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Positive confirmation is a part of confirmation procedure

if the question asked by the auditor to the client , and the client reverts back to the auditor and the answer of which is positive it states it is a positive confirmation

Negative confirmation is a part of confirmation procedure

if the question asked by the auditor to the client , and the client reverts back to the auditor and the answer of which is negative it states it is a negative confirmation

ekkarill92 answered 10 months ago
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