"four decisions" that auditor's must make in determining the amount and type of evidence to collect. In my opinion, the first three are probably the ones auditors focus on the most. However, I think the fourth point regarding the timing is just as critical (if not more important) in most circumstances. Timing can be influenced by standards or regulations, which is critical in terms of compliance. But it also can be important to the reliability of the information. It was an unspoken rule in our internal audit department that audits were not started between Thanksgiving and New Years. This is naturally when most try to take vacation days, so obtaining information was really difficult. It just wasn't a productive way to spend our time.
Can you think of any other situations where the timing of collecting evidence would be important?
Kizirian et al (2005) provide that timing of evidence collection reflects an auditor's confidence in client's internal controls such that evidence provided before year end is expected to reasonably reflect year end results and processes. We can therefore relate the timing audit evidence collection to client credibility that financial reports accurately portray the company's position through out the year (Kizirian et al, 2005). Audit risk is an important factor to consider in evaluating when to carry out audit evidence collection.
Considering client's internal control mechanisms can therefore affect when audit evidence is collected. When internal controls are ...
Timing of collecting evidence which would be the more important is examined.