What are the different types of evidence of audit?

Audit evidence may include physical evidence, assessment materials and information analysis. Together, a set of evidence should allow an authoritative statement to the auditor. Auditors can find evidence of discrepancies, information that suggests that accounting procedures are healthy or inconclusive evidence that makes it difficult to position. In the audit report, the auditor will discuss evidence and resources, so anyone who checks this message can understand how the auditor reached the conclusion. One of them is a documentary in nature; The company should have printed accounting records and electronic and this information can be very useful. Moreover, the evidence of audit may include physical control of asset. For example, if a company claims to have a piece of property, the auditor can look at it and determine whether the property matches the Description in the accounting documentation.

evidence of testimony includes confirmation orabout third -party answers to questions sent by the auditor. For example, the auditor could ask the bank for information about the company or ask for assessing the value of an asset from an expert. The auditors also perform direct questions of clients and use them as part of evidence of audit. Answers from the client can provide an important view of the accounting procedures and attitudes of clients. Observation is another form of evidence of audit, where the auditor focuses on how the client behaves to contextualize the findings of the audit.

Information analysis is a key part of the audit. This includes browsing through other forms of evidence that comes with a coherent narrative and identification of the areas of concern, such as the accounting statement that does not match. The auditors can also participate in re -performance, where they check Calculations and the transfers for accuracy. Errors can reveal the problem with accounting procedures or a simple error that has become more difficult when it was not caught.

source of evidence of audit may be important in ratingthe validity of the audit. External evidence and audits tend to be stronger because reviewers assume that third parties are not interested in the outcome of the audit. Internal evidence and audits can be valuable, but can also be distorted in nature. The auditors focus on a mixture of resources in their evidence to create a balanced picture of the overall financial situation of the company.