Auditing Articles: Audit Evidence

What is Audit Evidence? First of all, Audit Evidence is the evidence that obtained during the financial audit. They used by the auditor in arriving at the conclusions on which the auditor's opinion is based.

Therefore, they are consists both information that supports and corroborates management 's assertions regarding the financial statements or internal control over the financial reporting and information that contradicts such assertions.

However, they included types of audit evidences such as, inquiries of the client, documentation, analytical review procedure.Firstly, documentation is the examination the client's supported the documents. Only support internal and external documents. Secondly, inquiries of the client for this standard they only oral or written the information from the client they will do the confirmation by others sources.Thirdly, is the analytical review procedure is to comparisons of the recorded amounts to establish the industry average and make the auditor's understanding.

In addition, the audit evidence they also include 7 type of regular role such as:

Relevance - must pertain the audit objective being tested
Independence - evidence form outside the client is a stronger form of evidence
Effectiveness of client internal controls - good internal controls can mean better information
Auditor direct knowledge - auditor determinations are stronger that client comments
Qualifications - individual is a qualified source
Degree of objectivity - objective evidence is stronger than subjective evidence
Timeliness- balance sheet account evidence is better when it collected around the date of the financial statement, income statement evidence should sample entire period.