5.6 evidence gathering prdrs

Question 1

evidence gathering prdrs

Answer 1

carried out in all stages of adt
can also be perceived as subs prdrs or test of details of trsn

Question 2

evidence gathering prdrs

Answer 2

1. confirmation
2. inspection
3. observation
4. inquiry
5. recalculations
6. re performance
7. anal prdrs
8. data analytics

Question 3

1.confirmations

Answer 3

provide evi for assertion such as cash

very expensive

Question 4

2.inspection

Answer 4

examining doc and records and physically examining assets

provides evi for occurrence, cut-off and R&O when conducting bus prdrs on records and doc

provides evi for existence, AVA, completeness and accuracy when conducting inspection on assets and its maintenance

Question 5

3.observation

Answer 5

1.only provides evidence of a process at the time the auditor observes it being carried out.

2.An auditor will need to determine whether there is evidence that the procedures observed have been applied consistently throughout the period under audit.

Question 6

4.inquiry

Answer 6

1. asking questions verbally or in written form to gain an understanding of various matters throughout the audit
2. an auditor may document that information more formally and ask the other party to the discussion to sign an agreement that the auditor has recorded the discussion accurately.

Question 7

5. re calculation

Answer 7

checks mathematical accuracy records and files esp

Question 8

6.re-performance

Answer 8

1. redoing processes conducted by the client

2.When conducting substantive testing, client estimations are re-performed to verify amounts calculated by the client

Question 9

7. anal prdrs

Answer 9

an evaluation of financial information by studying plausible relationships among both financial and non-financial data

Question 10

8. audit data analytics

Answer 10

1.examination of large datasets, usually using computer software, for exceptions, outliers, trends, and other useful info

2. results are usually documented as a graph, chart, or table.

3.They often allow the auditor to test large populations very quickly.

4. extent to which an auditor can rely on a client’s data will depend a great deal on the internal controls the client has in place. An auditor must consider the effectiveness of their client’s internal controls over data gathering before planning an audit data analytic.

5.This includes assessing the quality of the data with respect to accuracy, completeness, and reliability