Unit 7B -- Audit Evidence and Documentation

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Unit- 7B Audit Evidence and Documentation

What is the evidence?

It is gathered and collected during the audit that supports the audit opinion and conclusions. During audit, auditor collects bank statements, vouchers, JVs and other material in soft form is called evident.

Why evidence is important.

Is required by auditing standard 2310, evidence is a relay important because auditor report is based on evidence. It is very helpful in supporting the auditor report?

How can we collect evidence?

We can collect the evidence in the following ways.

·        Physical evidence:

It is the evidence that seen by auditors like asset verification, stock count etc.

·        Third pasty representation:

This evidence received form outside the company like balance conformation from debit or and creditors, Lowers letters etc.

·        Documentary evidence:

Any type of document created by client or by the company like Purchase Order, Receipts, Goods Receipts Notes, and Invoices etc.

Any computerized documentations.

·        Computation:

Computation performed by auditors. Check the accuracy of client record by using mathematic formulas.

·        Client representation:

It is the Client response in written regarding the audit queries.

Accounting record:

Client according record like, journal vouchers, ledger, journal and trial balance