Audit Evidence Agreement


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The audit objectives that should be taken into account when considering liability claims verify the completeness, the accuracy and valuation of liabilities, as there is often a specific risk that liabilities will not be fully accounted for in accounting, particularly where there are doubts about the entity`s ability to continue trading or where there is pressure on the entity to achieve certain profit objectives. The statutory auditor should apply one or more types of audit procedures: ISA (UK and Ireland) 500, Audit Evidence, which explains the responsibilities of the auditor in collecting audit evidence that can corroborate the opinion of the auditor and what constitutes sufficient audit evidence. Note: CAS 500 – Audit documents contain important instructions explaining what audit evidence is. It deals with the responsibility of the auditor to design and implement audit procedures in order to obtain sufficient audit evidence to be able to draw reasonable conclusions on which the comptroller`s opinion can be based. If this option is not displayed, selected instructions and usage instructions can be displayed in CAS 500 by clicking on the “Plus” feature, which is displayed in the standard information above. CAS 500.A25 In some cases, the statutory auditor may consider it necessary to obtain written explanations from management and, if necessary, from administration officials to confirm the answers to oral questions. For more information, see CAS 580. Reperformance is the independent execution by the legal controller of the accounts of the procedures or controls originally carried out as part of the internal control of the company, either manually or by the use of CAATs, for example. B by re-enforcement of the debtors` maturity. Effective revenue control requires a satisfactory understanding of the company`s systems, i.e. existing systems and documents that are established to control the shipment of goods or the provision of services.

If the company has a distribution system that contains control elements to ensure that all sales have been recorded, the auditor could conduct control tests to obtain evidence of its effectiveness in detecting and correcting essential inaccuracies. The distribution system should be documented by the legal auditor and, if deemed effective following control tests, it can reduce the performance of substantive procedures. 20. The legal auditor may also be required to keep the documents in addition to the required documents. 5/ The sufficient evidence is the context that relates to the amount of examination evidence. The amount of evidence that examiners must collect depends on the amount of auditors in the area under review. As noted above, the reliability of the information to be used as proof depends on its source and nature, as well as the circumstances in which it is obtained. However, with regard to the reliability of the tests, the ISA 500 describes a number of generalizations, some of which are: 17. Other standards require the statutory auditor to conduct procedures in certain circumstances after the date of publication of the report. For example, auditors comply with paragraph 1 of the AU. 711, submissions under the status of the federal value document require certain procedures to be carried out until a registration declaration comes into effect. 3/ The legal auditor must identify and document any additional details made to the audit documents on the basis of these procedures, which are in accordance with the previous paragraph.

Note: An experienced accountant has a good understanding of audit activity and has reviewed the corporate sector as well as accounting and auditing issues relevant to the sector. ISA (UK and Ireland) 501, Audit Evidence – Specific considerations for certain positions, examines and requests, in particular, that the legal auditor, when inventory is essential for financial statements, must obtain sufficient evidence of audit on the existence of