Methods of
Obtaining Audit Evidence
The following are important methods of obtaining
audit evidence
Inspection of Document :- The inspection of
documents is the most common way to obtain audit evidence. Inspection is
not only restricted to document but it also includes inspection of fixed
assets.
Observation :- Observation is another important
way of obtaining audit evidence. This include the observation of
business process. The most common example of observation is observing
the physical inventory count at the year end.
External confirmation :- The external
confirmation is considered to be one of the most reliable way to confirm
the internally generated information. The most common example of
external confirmation is receivable and payable confirmation. However
,the auditor may confirm any information from third parties.
Checking Accuracy :- The auditor may calculate
the figures by himself to confirm the accuracy of calculation performed
by the management . for example the auditor may calculate the
depreciation schedule.
Inquires from the Management and others:- The
auditor may get the audit evidence from the inquires made from the
management and other relevant person like internal auditor , employees
etc.
Analytical Procedures ;- The auditor also obtain
information by performing different ratio analyses and analyzing
different trends.
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