Chapter 5 - Audit Evidence, Techniques And Procedure Flashcards
1
Q
Audit evidence must be two things
A
Sufficient - enables the auditor forms an opinion on the FS
Appropriate - relevant and reliable
2
Q
Audit sampling - deciding in sample size
A
Number of items
Likelihood of errors
Amount of evidence
3
Q
Methods of sampling
A
Statistical - random selection
Non statistical sampling - subjective approach eg. Select large transactions
4
Q
Once we have gathered the evidence
A
Analyse the errors:
What is the cause of the error
Does it need tightening up? - control deficiency
Fraud be involved or genuine error.
5
Q
During a report what would you report to a senior
A
Non routine transactions
Related party transactions
Suspected fraud
