Notes: Audit Evidence

Introduction

• Audit evidence is all the information on which auditors base their opinions.
• It is important that audit evidence is appropriate and sufficient.

What is Audit Evidence?

• All information that is important for the auditors' opinion.
• Information should be collected properly.

Responsibility of Auditors

• Auditors should design and implement audit procedures.
• Procedures should be sufficient and appropriate.

Audit Procedures

• Audit procedures ensure that the auditors' opinion is correct and fair.
• Procedures include risk assessments, control tests.

Types of Audit Evidence

1. Relevance: Information should be related to the area being audited.
   • Example: Telephone bill should be relevant to ABC Limited.
2. Reliability: The source of the information should be reliable.
   • External sources are more reliable.
3. Proof: All evidence should be accurate and complete.

Criteria for Reliability

• Audit evidence should be relevant and reliable.
• To check reliability, the following requirements should be considered:
  1. Source of information and its reliability.
  2. Accuracy and completeness of the information.

Conclusion

• It is important for audit evidence to be relevant, reliable, and sufficient.
• Auditors should maintain clarity and fairness in their work.
• Without proper and sufficient evidence, the quality of the audit can be affected.

Important Points

• Audit evidence: should be relevant and reliable.
• Audit procedures: should be secure and appropriate.
• Criteria for reliability: check source and accuracy.

Suggestions for Study

• Understand audit procedures and evidence thoroughly.
• Pay attention to different types of information and their sources.