Ch 9- Evidence

Question 1

Design audit procedures

Answer 1

Analytical procedures (Prior year data to Current year data)
Enquire- Who?
Inspect - document?
Observe- Stock count?
Recalculate - Update provisional depreciation
Confirmation (with lawyer, customer, bank)
Reperformance- Update data

Question 2

Data analytics

Answer 2

-sampling risk reduced
-quick turnaround
-More time for other work
-More time for client interaction and quicker turnaround

Question 3

Work of outsourced experts

Management- Use lawyers and internal audit
Auditor- Use valuation expert, lawyers etc.

Question 4

Internal audit work and OUtsourcing

Answer 4

-Gain written agreement from management not to interfere
-External auditors provide direction to internal auditors

-Request report from outsourced services- i.e. Payroll services e.g(Qualified opinion if not provided)

Question 5

Reliable sources

1 Third party - Original
2-Auditor generated (Copy)
3-Client generated (worst-least reliable)