What are the evidence of audit?
Audit evidence is evidence collected during the financial audit. The evidence collected during the audit may have a number of different forms and there must be sufficient evidence for the auditor to make the auditor's final opinion. This evidence must also be carefully controlled because it may potentially include intimate material and access to evidence must be limited to people who are authorized to explore. The approach is also limited to prevent manipulation or interference with evidence that could endanger the audit.
In audit, financial records and procedures are checked. People can perform audits for a number of reasons. Internally, companies use an audit to ensure that all their practices are legal. The audit can also be performed externally for compliance with the regulations to see if the company precisely shows financial information. If errors are detected during the audit, they must be corrected and intentional mistakes to be punished by law.
people can divide the audit evidence into two widecategories: internal and external. An example of evidence of internal audit is something like a checkbook register. External evidence includes things such as bank statements. Both types of evidence can be important to the audit; Ideally, the evidence should agree, which shows that the company follows the procedure and that its financial practices are fully legal.
The collection of evidence may include documents, observing practices within the company and performing interviews with employees. There can be interviewed with people responsible for financial records along with other staff members. If the company is involved in fraudulent or dubious activities, employees who are not directly involved in their activities could noticed an irregularity that could be important to the auditors.
When the auditors collect evidence, they record evidence in the audit work documents and make sure it is carefully ZDOCandled. At the end of the audit, all evidence is reviewed and the auditor generates an opinion. The auditors must be able to back up their conclusions with evidence and to prove exactly where the areas of interest lie and show how they got to the opinion that they did. For example, if the auditor states that the company consciously committed tax fraud, it could point out interviews with evidence of audit in which people have published their awareness that certain procedures are illegal and document the financial records that these procedures have been involved.