Ch. 14 Audit Evidence

Question 1

How much audit evidence is required?

Answer 1

Sufficient and appropriate audit evidence (CAS 500)

Question 2

What are the different types of audit evidence and rate them from most reliable to least

Answer 2

*Internally generated - least persuasive and reliable
*Externally generated but held by the client - this is somewhat persuasive, but it is in the possession of the client so it is not the best evidence
*Externally generated - practitioner obtains directly from a third party outside the audit client - most persuasive

Question 3

What type of audit evidence can we get from the client?

Answer 3

• Physical evidence (physical examination)
• Confirmation evidence (written communication of a tangible assets)
• Documentary evidence (inspecting clients or external documents and records)
• Analytical evidence (ratio analysis)