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Evidence (CH4+11)

The document discusses audit evidence including the types of evidence such as tests of controls and substantive procedures. It addresses factors that determine the quantity and quality of evidence such as the level of assurance and risk. Procedures to obtain evidence are also outlined, including inquiries, confirmation, observation, inspection and reperformance. The document also covers accounting estimates, with examples of estimates and the three methods auditors use to audit estimates including reviewing subsequent events, analyzing historical financial data, and assessing client assumptions.

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Md. Milon Chowdhury
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53 views

Evidence (CH4+11)

The document discusses audit evidence including the types of evidence such as tests of controls and substantive procedures. It addresses factors that determine the quantity and quality of evidence such as the level of assurance and risk. Procedures to obtain evidence are also outlined, including inquiries, confirmation, observation, inspection and reperformance. The document also covers accounting estimates, with examples of estimates and the three methods auditors use to audit estimates including reviewing subsequent events, analyzing historical financial data, and assessing client assumptions.

Uploaded by

Md. Milon Chowdhury
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Evidence (CH4+11)
Hand note:

Chapter 4

Year Q Question Mark Practice


No s (Yes/ No)
June 10 What includes audit evidence
2010
There are potentially two types of test which they will carry out:
1. Tests of controls and
2. Substantive procedures.
Quantity:
1. How much evidence is required will depend on the level of assurance being offered in an engagement.
2. The quantity of audit evidence required is affected by the level of risk in the area being audited.
3. It is also affected by the quality of evidence obtained. If the evidence is high quality, the auditor may need less than if it were
poor quality. However, obtaining a high quantity of poor quality evidence will not cancel out its poor quality.

Quality or reliability:
The following generalisations may help in assessing the reliability of audit evidence:

Year Q Question Mark Practice


No s (Yes/ No)
June 2a Discuss the attributes of evidence as per BSA 500 and list the sources of audit
2012 evidence
Dec 1a What do you mean by the term ‘Sufficient and Appropriate audit evidence’? State
2012 various factors that help the auditor to ascertain as to what is sufficient and
appropriate audit evidence.
Dec 1a What are the generalized principles mentioned in the International Standards of
2014 Auditing (ISA) as regards to greater reliability of audit evidence?
June 2b BAS 500 states that evidence must be sufficient and appropriate. What do you
2016 understand by the term “sufficient and appropriate”

Chapter 11
IOIC
RRA
Year Q Question Mark Practice
No s (Yes/ No)
June 10 Briefly explain the procedures to obtain audit evidence.
2010
June 2b Explain the procedures outlined in BSA 500 to obtain evidence.
2016
June 3c List out and describe the procedures that an auditor might use to obtain audit
2016 evidence.
June 3a What are the procedures outlined in BSA 500 to obtain evidence? Explain.
2017
Year Q Question Mark Practice
No s (Yes/ No)
Dec 10 What is accounting estimate? What will be auditor’s approach to audit of
2010 accounting estimates?
May 1a What are accounting estimates as per BAS 8? Give 5 (five) examples.
2014
May 1b What are the three methods for auditors as per BSA 540 to carry out audit
2014 of accounting estimates? Give examples of audit steps for each method.
May 1c What are the areas that auditor should consider in evaluating the
2014 assumptions on which the estimates are based in the preparation and
presentation of financial statements by the management?
June 3d Describe four procedures that the auditors of a limited company should
2016 carry out to verify the provision for a pending legal claim against it?

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