5.3 persuasiveness of adt evi

Question 1

persuasiveness of audit evidence

Answer 1

1.adtrs need persuasive evidence to corroborate clients’ trsns and balance.

2.adtr verifies recorded items by using
confirmation,
documentary,
computational,
physical evi
electronic evi
legal and representation letters
verbal evi

Question 2

types of persuasiveness of audit evidence

Answer 2

1. internally generated evidence
2. externally generated evidence held by client
3. externally generated evidence sent directly to adtr

Question 3

1. internally generated evidence

Answer 3

information created by client

least persuasive as held by client thus greater opportunity to manipulate or alter the information

can be in hard copy or soft copy

Question 4

1. internally generated evidence list

Answer 4

minutes
purchase orders
contracts
invoices
records of cheques sent
statement sent to customers
company documentation regarding policies and procedures,
contracts produced by entity,
minutes of meetings,
journals, ledgers, trial balances, spreadsheets, worksheets, reconciliations, calculations, and computations

Question 5

2. Externally generated evidence held by client

Answer 5

a little more persuasive as produced by third party but not too reliable as it can still be altered

if photocopies are provided to adtrs instead of originals, less reliability

Question 6

2. Externally generated evidence held by client list

Answer 6

supplier invoices and statements,
customer orders, bank statements,
contracts,
lease agreements,
tax assessments.

Question 7

3. externally generated evidence sent directly to adt

Answer 7

most persuasive and most reliable as evidence sent directly to adtr from third party( making it independent)

even better if sourced from reliable trustworthy and independent third party

Question 8

3. externally generated evidence sent directly to adt list

Answer 8

confirmations,
correspondence with the client’s lawyers,
expert valuations.