Audit Evidence

Question 1

How to find test of control/Test of detail

Answer 1

Examples of tests of details include:
• Inspection of invoices to verify the accuracy of the amounts recorded in the
financial statements
• Physical inspection of non-current assets and inventory to verify their existence
• Review of board meeting minutes for evidence of any provisions for legal claims
which should be included in the financial statements
• Review of after date monies received per the cash book in order to gain evidence
over the valuation of receivables.

Question 2

Analytical Procedures

Answer 2

Evaluation of financial information by a comparison to
financial and non-financial data and the investigation
of identified fluctuations and relationships inconsistent
with other information

Question 3

How to obtain evidence

Answer 3

• Analytical procedures
• Enquiry and confirmation
• Inspection
• Observation
• Recalculation & reperformance

Question 4

How to obtain evidence

Answer 4

Inspection: Examining records, documents, whether internal, in
paper form, electronic form, or other media, or physical
examination of tangible assets.
Observation: Looking at a process or procedure being performed by
others

Enquiry: Enquiry consist of seeking information from knowledgeable persons,
both financial and non-financial within the entity or outside the
entity

Confirmation: External confirmation representations audit evidence obtained by
the auditor as a direct written response to the auditor from a third
party, in paper form, electronic form or by other medium.

Reperformance: This is the auditor’s independent execution of procedures or
controls that were originally performed as part of the entity’s
internal control.

Recalculation: This consists of checking the mathematical accuracy of
documents of records and can be performed through the use of
IT.
It may be performed by manually or electronically.