Chapter four new

Modern
Modern Auditing:
Auditing:
Assurance
Assurance Services
Services and
and the
the
Integrity of Financial Reporting, 8 th
Integrity of Financial Reporting, 8th
Edition
Edition
William C. Boynton
California Polytechnic State
University at San Luis Obispo
Raymond N.
Johnson
Portland State University
Chapter 4 – Audit Responsibility, Objectives,

Evidence, Assertion and Recording the Audit
Objective of Conducting an
Audit of Financial Statements
The objective of the ordinary audit of financial
statements is the expression of an opinion of
the fairness with which they present fairly, in
all respects, financial position, result of
operations, and its cash flows in
conformity with GAAP.
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley 6-2

Steps to Develop Audit
Objectives

Management’s Responsibilities
Management is responsible for the financial

statements and for internal control.
The Sarbanes-Oxley Act increases management’s

responsibility for the financial statements.
It requires the CEO and the CFO of public

companies to certify the quarterly and annual
financial statements submitted to the SEC.
Management’s Responsibilities
The Sarbanes-Oxley Act provides for criminal

penalties for anyone who knowingly falsely
certifies the statements.

Auditor’s Responsibilities
 Material versus immaterial misstatements
 Reasonable assurance
 Errors versus fraud
 Professional skepticism
 Fraud resulting from fraudulent financial

reporting versus misappropriation of assets

Auditor’s Responsibilities for
Discovering Illegal Acts
 Evidence accumulation and other actions
when there is reason to believe direct- or
indirect-effect illegal acts may exist
 Actions when the auditor knows of an illegal act

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Understanding the entity and its
environment
• The auditor is required to obtain an
understanding of the entity and its
environment in order to be able to assess the
risks of material misstatements.
• ISA 315 (Revised) Identifying and assessing the
risks of material misstatement through
understanding the entity and its environment
states that the objective of the auditor is to
identify and assess the risks of material
misstatement, whether due to fraud or error,
through understanding the entity and its
environment, including the entity's internal
control, thereby providing a basis for
designing and implementing responses to the
assessed risks of material misstatement.
• A combination of the following procedures
should be used to obtain an understanding:
1. Inquiries of management, internal auditors and
others within the entity
2. Analytical procedures
3. Observation and inspection
• ISA315 also states that if the auditor is going
to use information from prior year audits, the
auditor shall determine whether changes have
occurred that could affect the relevance to the
current year's audit.
1. Inquiry: The auditors will usually obtain most of
the information they require from staff in the
accounts department, but may also need to
make inquiries of other personnel, for example
production staff or those charged with
governance.
2. Analytical procedures consist of the evaluations
of financial information made by a study of
possible relationships among both financial and
non-financial data. They also encompass the
investigation of identified fluctuations and
relationships that are consistent with other
relevant information or deviate significantly
from predicted amounts.
3. Observation and inspection: These
techniques are likely to confirm the answers
made to inquiries made of management.
They will include observing the normal
operations of a company, reading documents
or manuals relating to the client's operations
or visiting premises and meeting staff.
Nature of audit evidence-
ISA-300
15
The purpose of financial statement audit is the

expression of an opinion on the fairness of the financial
statements.
To have a basis for an opinion, the auditor has to gather
and evaluate evidence.
The third standard of field work requires the auditor to
obtain sufficient and competent evidential matter.
Audit evidence is any information used by the auditor to
determine whether the quantitative information being
audited is stated in accordance with the established
criteria.
The information varies widely in the extent to which it
persuades the auditor whether the financial statements
are stated in accordance with generally accepted
accounting
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principles. Saturday, February 22, 2025
cont’d…
16
Audit evidence includes all the things that

influence the auditor’s judgment in evaluating
whether the financial statements are in
conformity with GAAP/IFRS.
Audit evidence is any information or
document that confirms or rejects a premise
(a statement or hypothesis).
Auditors use both quantitative and qualitative
evidence in the audits of financial statements.
Thus most of the auditor’s work involves
obtaining and evaluating evidences.
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cont’d
17
What makes audit evidence competent and

sufficient?
Competency of evidence is related to its quality
and reliability.
Evidence is said to be competent if it is both valid
and relevant.
The quality of audit evidence is affected by
1. the source of the audit evidence,
2. the strength of the client’s internal control
and
3. the ability of the auditor to gather firsthand
information.
Cont’d
18
1. The source of the audit evidence: Evidence

obtained from independent sources outside the
client is more reliable than evidences obtained
from the client.
2. The strength of the client’s internal control: The
quality and reliability of audit evidence increases
if the client has strong internal control
3. The ability of the auditor to gather first hand
information: Information obtained by auditors
through personal observation, computation or
using other techniques increases the reliability of
audit evidence.
Audit evidence decision
19
A major decision facing auditors is the

determination of the type and amount of audit
evidence to be accumulated and evaluated.
 Auditors should consider the following factors to
decide on the type and amount of evidence to be
accumulated.
1. Determine the audit procedure
2 . Determine the sample size to be selected for a
given audit procedure.
3. Determine sample items to be selected
4. Determine the time to perform the procedure
Cont’d…
20
1. Audit procedure
It is the detailed instruction which explains audit evidence to be
obtained during the audit.
Auditors must specify the audit procedure in more specific
terms so that they will follow it.
Example:- audits of verification of cash disbursement,
examine the cash disbursement journal and compare the
employee name, amount and date with the bank statement sent
from the bank.
2. sample size:- once auditors specify the audit procedure they
must determine the sample of items that varies from one to the
total items in the population being tested.
3. Items to be selected:- after determining the sample size
auditors must identify the item to be tested.
Cont’d…
21
4. timing:- it is influenced when:-

 the client wants the audit to be completed
 the auditors belief that the audit evidence is
persuasive and staffs are available.

Persuasiveness of audit evidence
22
Due to the nature and cost of evidence, auditors

may not convinced completely that the audit
evidence and audit reports are correct. However,
auditors must persuade evidence is sufficient,
appropriate to issue correct audit report.
The persuasiveness of audit evidence is affected
by-
1. appropriateness of audit evidence
2. sufficiency of audit evidence
1. Appropriateness:- is a measure of quality of
audit evidence.
Cont’d…
23
It is a measure of the relevance and reliability of

audit evidence in achieving audit objective for
account balance, class of the transaction and
disclosure audit objective.
Appropriateness deals only with the audit
procedure.
Appropriateness can’t be improved by selecting
large size or items from different population.
Appropriateness can be improved only by
selecting an audit procedure that result at
relevant and reliable audit evidence.
example, checking shipment with sales invoice

Cont’d…
24
a. Relevance of evidence:- an evidence is relevant if it is pertains

to the audit objectives.
b. reliability:- refers to the degree to which evidence can be
believable or trustworthy.
Reliability of audit evidence is affected by the following six
characteristics of evidence:-
1.Independence of the provider--information
received from outside the entity is presumed to
be more reliable than from inside the entity.
2.Effectiveness of the client's internal
controls--evidence from a client whose internal
controls are effective is more trustworthy.

Cont’d…
25
3. Auditor's direct knowledge--data or calculations prepared

by someone inside the organization will not be as reliable as data
computed or discovered by the auditor directly.
4. Qualifications of the individuals providing the
information--reliability of the information is enhanced if the
person providing it is qualified to do so.
5. Degree of objectivity--objective evidence is more reliable
than evidence that is subjective.
6. Timeliness--data that are timely for the purpose intended are
considered more reliable.

Cont’d…
26
2. Sufficiency of evidence relates to the quantity of

evidence auditors should obtain.
It is directly related to sample size from that of the total
population.
Though the sufficiency audit evidence is determined by the
auditor’s professional judgment, factors such as
 competence, materiality and risk are the determinants
of the sufficiency of audit evidence.
In general, more evidences are needed for accounts that
are material to the financial statements than for accounts
that are immaterial. Similarly, more evidences are normally
required for accounts that are likely to be misstated than for
accounts that are likely to be correct. But still, the amount of
evidence that is considered sufficient to support the auditor’s
opinion
By: MULU.Mis a matter of professional judgment.
Saturday, February 22, 2025
Cont’d…
27
One of the factors affecting the reliability

of the audit evidence is its source.
To clarify more, you may classify
evidence as follows:
Evidence originated by the auditor,
 Evidence created by the third party
and
Evidence created by the management
of the client.
Cont’d…
28
Evidence created by the auditor: this

type of evidence is exceptionally reliable
since there is little risk of being
manipulated by management.
Analytical review procedures,
 physical inspection or observation and
Remeasurement of performance of
calculations are some of the reliable
evidences that might obtained by the
auditors.
Cont’d…
29
Evidences obtained from third parties: Evidences

obtained from third parties independent of the client
are more reliable than evidence produced by the
client.
Examples may include:
 confirmation letter obtained from the client’s
customer,
 confirmation of bank balances,
 reports produced by specialists such as property
valuations and legal opinions,

 documents provided by the client which were
issued by third parties such as invoices.

Cont’d…
30
Evidences originated from client’s

management: this type of evidence is less
reliable than evidence obtained from outside party.
The degree of reliance to be placed on such
evidence depends on
 the reliability of the client,
 internal control and
 materiality of the item.
Examples of such evidence includes the client’s

accounting records, supporting schedules, and the
clients oral explanations.

Types of audit evidence
31
When conducting audits, auditors gather

a combination of many types of evidences.
The auditor should consider whether the
conclusions drawn from different types of
evidences are consistent with one
another.
Audit evidence is a fundamental concept
in auditing and the major types of
evidences that are gathered during an
audit are classified as follows:
Types of Audit Evidence
Physical
Examination
Confirmation
Observation
Audit Documentation
Reperformance Evidence
Analytical
procedures
Recalculation
Inquiry
Physical Examination
It is the inspection or count by the

auditor of a tangible asset.
This type of evidence is most often

associated with inventory and cash.
Cont’d…
34
 Physical examination is a direct means of verifying that an

asset actually exists (existence objective), and to a lesser extent
whether existing assets are recorded (completeness objective). It
is considered one of the most reliable and useful types of audit
evidence. Generally, physical examination is an objective means
of ascertaining both the quantity and the description of the asset.
In some cases, it is also a useful method for evaluating an asset’s
condition or quality.
 However, physical examination is not sufficient evidence to verify
that existing assets are owned by the client (rights and
obligations objective), and in many cases the auditor is not
qualified to judge qualitative factors such as obsolescence or
authenticity (realizable value objective). Also, proper valuation
for financial statement purposes usually cannot be determined by
physical examination (accuracy objective).

Confirmation
35
 Confirmation: It refers to the process of requesting
and receiving information in written form from a third
party. It describes the receipt of a direct written
response from a third party verifying the accuracy of
information that was requested by the auditor.
 The response maybe in electronic or paper form. The
request is made to the client, and the client asks the
third party to respond directly to the auditor.
 Because confirmations come from sources independent
of the client, they are a highly regarded and often-used
type of evidence. However, confirmations are relatively
costly to obtain and may cause some inconvenience to
those asked to supply them. Therefore, they are not
used in every instance in which they are applicable.

Documentation
It is the auditor’s inspection of the

client’s documents and records.
Internal External
documents documents
37
 Documentation is the auditor’s inspection of the

client’s documents and records to substantiate
the information that is, or should be, included in
the financial statements. The documents
examined by the auditor are the records used by
the client to provide information for conducting
its business in an organized manner, and may be
in paper form, electronic form, or other media.
 Documentation is widely used as evidence in
audits because it is usually readily available at a
relatively low cost. Sometimes, it is the only
reasonable type of evidence available.
Documentation
38
 Documents can be conveniently classified as internal and

external. An internal document has been prepared and
used within the client’s organization and is retained
without ever going to an outside party.
 Internal documents include duplicate sales invoices,
employees’ time reports, and inventory receiving reports.
 An external document has been handled by someone
outside the client’s organization who is a party to the
transaction being documented, but which are either
currently held by the client or readily accessible.
 Some documents, such as cancelled checks, originate
with the client, go to an outsider, and are finally returned
to the client.

Analytical Procedures
 Understand the client’s industry and business

 Assess the entity’s ability to continue as a
going concern
 Indicate the presence of possible misstateme
in the financial statements
 Reduce detailed audit tests
Cont’d…
40
Analytical evidence: These are used to

establish reliability of information by
analyzing relationships among financial and
other information.
It involves determining an expected or desired
balance and determining the tolerance level.
This type of audit evidence involves the use of
ratios and comparisons of the client data with
industry trends, general economic conditions,
and prior or expected company results.

Cont’d...
41
Analytical evidence provides a basis for supporting

an inference on the fairness of a specific financial
statement item or relationship.
 Analytical evidence relates primarily to the
existence, completeness and valuation audit
objectives.
This type of evidence may help to understand
client’s strength and weakness in comparison to
similar companies.
However, auditors must be careful of
comparability such as size, accounting methods
adopted and other business issues
Inquiry
42
Inquiries: Inquiry is the obtaining of written or

oral information from the client in response to
questions from the auditor. These are questions
directed towards client’s personnel. Such method
of gathering evidence could be made either in
written or oral or combination of both, so do the
response.
Although considerable evidence is obtained from
the client through inquiry, it usually cannot be
regarded as conclusive because it is not from an
independent source and may be biased in the
client’s favor. Therefore, when the auditor
obtains evidence through inquiry, it is normally
necessary to obtain corroborating evidence
through other procedures.
Recalculation
43
It involves rechecking a sample of calculation

made by the client.
 Such type of mathematical evidence may resu
such routine tasks as checking the footing of jo
and ledger or from complicated Calculations
pertaining to pension plans and earning Per sha

Recalculation
44
Rechecking client calculations consists of

testing the client’s arithmetical accuracy and
includes such procedures as extending sales
invoices and inventory, adding journals and
subsidiary records, and checking the
calculation of depreciation expense and
prepaid expenses. A considerable portion of
auditors’ recalculation is done by computer
assisted audit software.

Re-performance
45
Re-performance is the auditor’s

independent tests of client accounting
procedures or controls that were originally
done as part of the entity’s accounting and
internal control system. Whereas
recalculation involves rechecking a
computation, re-performance involves
checking other procedures.

Re-performance
46
 It is the auditor’s independent tests of cli

accounting procedures or controls that
were originally done.
 This procedure is used to obtain audit

evidence by repeating a client activity.

Observation
47
 Use one’s senses to assess

client activities.
 Tour plant to obtain a general
impression of client’s facilities.
 Observation is rarely sufficient
by itself.
 Often need to corroborate
with another kind of evidence.

Types of audit evidence
48
At the end of field work auditors obtain a written letter of
representations from the client, verifying oral
representations falling in to the following categories.
All relevant records have been made available to the
auditors, financial statements are complete and prepared in
conformity with generally accepted accounting principles
and all items requiring disclosures have been disclosed
properly.
Auditors may also request written representations from
out side experts.
An auditor is not expected to possess expertise of lawyers
in evaluating litigation pending against the client or
geologist in estimating the quantity of a mineral oil.
When an auditor needs such evidence, they can use the
work of a specialist (lawyer or geologist) to obtain
competent evidential matter.
Responses to the risks of material
misstatement at the assertion level
• Assertions are representations by
management, explicit or otherwise, that are
embodied in the financial statements, as used
by the auditors to consider the different types
of potential misstatements that may occur.
• The ISA says that the auditor shall design and
perform further audit procedures whose
nature, timing and extent are based on and
are responsive to the assessed risks of
material misstatement at the assertion level.
• 'Nature' refers to the purpose and the type of
test that is carried out, which include
1. Tests of controls and
2. substantive tests.
1. Tests of controls are audit procedures
designed to evaluate the operating
effectiveness of controls in preventing, or
detecting and correcting, material
misstatements at the assertion level
2. Substantive procedures are audit procedures
designed to detect material misstatements at
the assertion level. They consist of tests of
details of classes of transactions, account
balances and disclosures, and substantive
analytical procedures.
• substantive analytical procedures may include
the following:
– Agreeing or reconciling the financial statements to
the underlying accounting records
– Examining material journal entries
– Examining other adjustments made in preparing
the financial statements
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Management Assertions
1. Assertions about classes of transactions and

events for the period under audit
2. Assertions about account balances at period end
3. Assertions about presentation and disclosure
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley 6 - 69

Management Assertions for
Each Category of Assertions
Assertions About Classes Assertions About Assertions About
of Transactions and Events Account Balances Presentation and Disclosure
Occurrence Existence Occurrence and rights
and obligations
Completeness Completeness Completeness
Accuracy Valuation and Accuracy and
allocation valuation
Classification Rights and Classification and
obligations understandability
Cutoff

General Transactions-related Audit
Objectives
Recorded transactions
Occurrence
exist
Existing transactions
Completeness
are recorded
Recorded transactions
Accuracy are stated at the
correct amounts
General Transactions-related Audit
Objectives
Transactions are included

Posting and
in the master files and
summarization
are correctly summarized.
Transactions are properly

Classification
classified.
Transactions are recorded

Timing
on the correct dates.
Hillsburg Hardware Co.
(Applied to Sales Transactions)
Management Assertions General Transaction- Specific Sales Transaction-

About Classes of related Audit related Audit Objectives
Transactions and Events Objectives
Occurrence Occurrence Recorded sales are for
shipments made to
nonfictitious customers
Completeness Completeness Existing sales
transactions are recorded
Accuracy Accuracy Recorded sales are for
the amount of goods
shipped and are correctly
billed and recorded

(Applied to Sales Transactions)
Management Assertions General Transaction- Specific Sales Transaction-

About Classes of related Audit related Audit Objectives
Transactions and Events Objectives
Accuracy Posting and Sales transactions are

summarization properly included in the
master file and are
correctly summarized
Classification Classification Sales transactions are
properly classified
Cutoff Timing Sales transactions are
recorded on the correct
dates.

General Balance-related
Audit Objectives
Existence Amounts included exist
Existing amounts are

Completeness
included
Amounts included are

Accuracy stated at the correct
amounts

Audit Objectives
Amounts are properly
Classification
classified
Transactions are recorded

Cutoff
in the proper period
Account balances agree

Detail tie-in with master file amounts,
and with the general ledger

Audit Objectives
Realizable Assets are included at
value estimated realizable value
Rights and
Assets must be owned
obligations

(Applied to Inventory)
Management Assertions General Balance- Specific Balance-related Audit

About Account Balances related Audit Objectives Applied to Inventory
Objectives
Existence Existence All recorded inventory exists
at the balance sheet date
Completeness Completeness All existing inventory has
been counted and included
in the inventory summary


Objectives
Valuation and Accuracy Inventory quantities on the
allocation client’s perpetual records
agree with items physically
on hand
Prices used to value
inventories are materially
correct
Extensions of price times
quantity are correct and
details are correctly added


Objectives
Valuation and Classification Inventory items are properly
allocation classified as to raw
materials, work in process,
and finished goods
Cutoff Purchase cutoff at year end
is proper
Sales cutoff at year end is
proper


Objectives
Valuation and Detail tie-in Total of inventory items
allocation agrees with general ledger
Realizable Inventories have been written
value down where net realizable
value is impaired
Rights and obligations Rights and The company has title to all
obligations inventory items listed
Inventories are not pledged
as collateral

(Applied to Notes Payable)
Management General Specific Presentation and

Assertions About Presentation- Disclosure-related Audit Objectives
Presentation and and Disclosure- Applied to Notes Payable
Disclosure related Audit
Objectives
Occurrence Occurrence Notes payable as described in the
and rights and and rights and footnotes exist and are
obligations obligations obligations of the company
Completeness Completeness All required disclosures related
to notes payable are included in
the financial statement footnotes

(Applied to Notes Payable)
Management General Specific Presentation and

Assertions About Presentation- Disclosure-related Audit Objectives
Presentation and and Disclosure- Applied to Notes Payable
Disclosure related Audit
Objectives
Valuation and Valuation and Footnote disclosures related to
allocation allocation notes payable are accurate.
Classification Classification Notes payable are appropriately
and and classified as to short-term and
understandability understandability long-term obligations and
related financial statement
disclosures are understandable

How Audit Objectives Are Met
The auditor must obtain sufficient and appropriate

audit evidence to support all management
assertions in the financial statements.
 An audit process has four specific phases

 Client acceptance
 Planning audit
 Testing and Evidence
 Evaluation and Reporting

Audit documentation
• Audit documentation is the record of audit
procedures performed, relevant audit evidence
obtained and conclusions reached. The term
'working papers' or 'work papers' are also
sometimes used.
• All audit work must be documented: the working
papers are the tangible evidence of the work
done in support of the audit opinion.
• ISA 230 Audit documentation states that the
auditor shall prepare audit documentation on a
timely basis.
• It is important to document audit work
performed in working papers to:
1. Enable reporting partner to ensure all planned
work has been completed adequately
2. Provide details of work done for future reference
3. Assist in planning and control of future audits
4. Encourage a methodical approach
Audit documentation is necessary for
the following reasons:
1) It provides evidence of the auditor's basis for a
conclusion about the achievement of the overall
objective.
2) It provides evidence that the audit was planned and
performed in accordance with ISAs and other legal
and regulatory requirements.
3) It assists the engagement team to plan and perform
the audit.
4) It assists team members responsible for supervision
to direct, supervise and review audit work.
5) It enables the team to be accountable for its work.
6) It allows a record of matters of continuing significance
to be retained.
7) It enables the conduct of quality control reviews and
inspections (both internal and external).
Audit files
• For recurring audits, working papers may be
split between:
1. Permanent audit files (containing information of
continuing importance to the audit).
2. Current audit files (containing information of
relevance to the current year's audit). These
should be compiled on a timely basis after the
completion of the audit
• Contents of the permanent audit file
– Engagement letters
– New client questionnaire
– The memorandum and articles
– Other legal documents such as prospectuses,
leases, sales agreement
– Details of the history of the client's business
– Board minutes of continuing relevance
– Previous years' signed accounts, analytical review
and management letters
– Accounting systems notes, previous years' control
questionnaires
• Contents of the current audit file
– Financial statements
– Accounts checklists
– Management accounts details
– Reconciliations of management and financial
accounts
– A summary of unadjusted errors
– Report to partner including details of significant
events and errors
– Previous years' signed accounts, analytical review
and management letters
– Audit planning memorandum
– Time budgets and summaries
– Representation letter
– Management letter
– Notes of board minutes
– Communications with third parties such as experts
or other auditors
• They also contain working papers covering
each audit area. These should include the
following:
– A lead schedule including details of the figures to
be included in the accounts
– Problems encountered and conclusions drawn
– Audit programmes
– Risk assessments
– Sampling plans
– Analytical review
– Details of substantive tests and tests of control
• The auditor will refer to the following to help
in obtaining an understanding of the entity
and its environment:
– The permanent audit file where information of
continuing importance to the audit is kept
– Audit working papers from the previous year’s
audit file
– Information from the client’s website
– Publications or websites related to the industry
the client operates in

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Modern

Chapter 4 – Audit Responsibility, Objectives,

©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley 6-2

©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley 6-3

Management is responsible for the financial

The Sarbanes-Oxley Act increases management’s

It requires the CEO and the CFO of public

The Sarbanes-Oxley Act provides for criminal

©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley 6-5

 Errors versus fraud

 Fraud resulting from fraudulent financial

©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley 6-6

 Actions when the auditor knows of an illegal act

©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley 6-7

By: Mulu M. 02/22/25

By: Mulu M. 02/22/25

The purpose of financial statement audit is the

Audit evidence includes all the things that

What makes audit evidence competent and

1. The source of the audit evidence: Evidence

A major decision facing auditors is the

4. timing:- it is influenced when:-

By: MULU.M Saturday, February 22, 2025

Due to the nature and cost of evidence, auditors

It is a measure of the relevance and reliability of

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a. Relevance of evidence:- an evidence is relevant if it is pertains

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3. Auditor's direct knowledge--data or calculations prepared

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2. Sufficiency of evidence relates to the quantity of

One of the factors affecting the reliability

Evidence created by the auditor: this

Evidences obtained from third parties: Evidences

 reports produced by specialists such as property

valuations and legal opinions,

issued by third parties such as invoices.

Evidences originated from client’s

 internal control and

 materiality of the item.

Examples of such evidence includes the client’s

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When conducting audits, auditors gather

It is the inspection or count by the

This type of evidence is most often

 Physical examination is a direct means of verifying that an

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By: MULU.M Saturday, February 22, 2025

It is the auditor’s inspection of the

 Documentation is the auditor’s inspection of the

 Documents can be conveniently classified as internal and

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 Understand the client’s industry and business

Analytical evidence: These are used to

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Analytical evidence provides a basis for supporting

Inquiries: Inquiry is the obtaining of written or

It involves rechecking a sample of calculation

By: MULU.M Saturday, February 22, 2025