ISA 500 ( Audit Evidence)

Question 1

What are the types of Audit procedures?

Answer 1

There are 7 types of Audit procedures:
1) Inquiry
2) Observation
3) Inspection
4) Recalculation
5) Reperformance
6) External confermation
7) Analytical procerdures.

Question 2

What are the perpose of audit procedures?

Answer 2

1) Risk assesment procedure
2) Further audit procedures include:
* Test of controls
* Substantive procedure

Question 3

What are the Risk assesment procedures?

Answer 3

Procedures to obtain:
a)Understanding of entity.
b)Understanding of internl control.
to acess the risk of material misstatment at assertion level and F/s level.

Question 5

What are the Test of controls?

Answer 5

Test of control are performed to confirm the opertating effectiveness of internal control in preventing,detecting and correcting misstatement at assertion level.

Question 6

What are the substantive procedures?

Answer 6

Sustantive procedure are used to detect the misstatement in F/s at assertion level.

Question 7

What are the main types of selecting items for testing?

Answer 7

There are three main types of selecting items:
a) Selecting all items( 100% examination).
b) Selecting specific items ( Judgemental selection)
c) Audit sampling