Audit evidence: Evaluate inquiry and oral evidence, limitati

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• 6-21 audit evidence: evaluating inquiry and oral evidence

  557657 6-21 audit evidence: evaluating inquiry and oral evidence 6-21 (Audit evidence) In an audit of financial statements, an auditor must judge the validity of the audit evidence obtained.

• Audit Evidence and Assertions

  iii) Discuss the validity and limitations of inquiry and oral evidence. b) An audit may include computation of various balance sheet and operating ratios for comparison to prior years and industry averages.

• Audit Experience and Guidance

  The third Audit Procedure for obtaining audit evidence is observation of important procedures and processes. An important issue in this regard is the observation of inventory count. The fourth Audit Procedure for obtaining audit evidence is inquiry.

• Professional skepticism

  Auditors adopt an attitude of professional skepticism when they evaluate audit evidence.

• assessing control risk

  Here the new audit employee must use inspection, re performance and inquiry. The auditor must gather evidence of operational effectiveness. He must evaluate the evidence gathered in relations to the effectiveness of operation of internal control.

• You are a new auditor for B&O LLP, a large public accounting

  (b)Will inquiry provide sufficient audit evidence? Explain. No.

• Auditor collect documentation, perform analytical procedures

  These audit evidence includes inspection of records or documents, inquiry, observation, inspection of tangible assets, confirmation, scanning analytical procedures, and recalculation.

• Evidence obtained directly by internal auditing vs. indirect

  So, if internal audit gathers direct evidence, this would be convincing ("reliable") than indirect evidence such as seeing a photo copy of something or hearing someone tell you about a process, document or computation ("inquiry").

• Audit evidence: Validity of sources of evidence

  Audit evidence ranging in quality and source.