AUDITEVIDENCE   QUESTIONS
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 1How much evidenceshould becollected?Richard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣   SUFFICIENT & APPROPRIATE ‣   to draw a reasonable conclusion ‣   on which to base an op...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 2What will increasethe reliability ofevidence?Richard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣   EFFECTIVE CONTROLS ‣   External rather than internalRichard Clarke Academy             ...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 3Specifically whygather evidence?Richard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣   UNDERSTAND THE ENTITY ‣   Assess controls ‣   Detect misstatementsRichard Clarke Academ...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 4What are the 7ways of gatheringevidence?Richard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER‣  Inspection‣  Observation‣  External confirmation‣  Re-calculation‣  Re-performance‣  Analy...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 5What are analyticalprocedures?Richard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣   Analysis of trends & expectations ‣   Expected ratiosRichard Clarke Academy            ...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 6Are analyticalprocedures enoughon their own?Richard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣   No ‣   Must corroborate other evidenceRichard Clarke Academy               aCOWtancy.com
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 7When are analyticalprocedurescompulsory?Richard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣   Planning (risk assessment) ‣   ReviewRichard Clarke Academy          aCOWtancy.com
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 8At the planningstage whatlimitations maythere be with AP?Richard Clarke Academy     aCOW...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣   Prior to year end often ‣   Draft or projected figuresRichard Clarke Academy         aCO...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 9Do managementrepresentationsoffer high or lowreliability?Richard Clarke Academy     aCOW...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣   Low ‣   Only use if no other evidenceRichard Clarke Academy             aCOWtancy.com
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 10What should wedefinitely getmanagementrepresentations on?Richard Clarke Academy     aCO...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣   They approve FS ‣   Controls are in place ‣   Misstatements are immaterialRichard Clark...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 11When using expertswho hasresponsibility fortheir work?Richard Clarke Academy     aCOWta...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣     External Auditor stillRichard Clarke Academy        aCOWtancy.com
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 12What must weconsider whenusing the expert?Richard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣   Competence ‣   Objectivity ‣   Scope ‣   EvidenceRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 13What must beagreed in writingbefore using theexpert?Richard Clarke Academy     aCOWtanc...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣   Objective ‣   Scope ‣   Responsibilities ‣   Communication ‣   ConfidentialityRichard Cl...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 14What must beconsidered whenthe experts work isgiven to us?Richard Clarke Academy     aC...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣   Consistency with other evidence ‣   Assumptions used ‣   Source data and methods usedRi...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 15Is there a referenceto the expert’swork in the auditreport?Richard Clarke Academy     a...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣     NoRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 16When consideringusing internalauditor’s work -what must youknow about them?Richard Clar...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣   Status in company ‣   Scope of their work ‣   Competence ‣   Due professional careRicha...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 17How can theinternal audit andtheir work bereviewed?Richard Clarke Academy     aCOWtancy...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣   Have they been trained? ‣   Have they been supervised? ‣   Sufficient, appropriate evid...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 18Another auditorshould be able todo what by lookingat your workingpapers?Richard Clarke ...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣     Re-perform the workRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSQUESTION 19How can you checkif all related partieshave beenidentified?Richard Clarke Academy     a...
AUDIT EVIDENCE QUESTIONSRichard Clarke Academy     aCOWtancy.com
AUDIT EVIDENCE QUESTIONSANSWER ‣   Check management procedures ‣   Inquire of management ‣   Shareholder records ‣   Tax r...
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  • Audit evidence questions

    1. 1. AUDITEVIDENCE QUESTIONS
    2. 2. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    3. 3. AUDIT EVIDENCE QUESTIONSQUESTION 1How much evidenceshould becollected?Richard Clarke Academy aCOWtancy.com
    4. 4. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    5. 5. AUDIT EVIDENCE QUESTIONSANSWER ‣ SUFFICIENT & APPROPRIATE ‣ to draw a reasonable conclusion ‣ on which to base an opinionRichard Clarke Academy aCOWtancy.com
    6. 6. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    7. 7. AUDIT EVIDENCE QUESTIONSQUESTION 2What will increasethe reliability ofevidence?Richard Clarke Academy aCOWtancy.com
    8. 8. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    9. 9. AUDIT EVIDENCE QUESTIONSANSWER ‣ EFFECTIVE CONTROLS ‣ External rather than internalRichard Clarke Academy aCOWtancy.com
    10. 10. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    11. 11. AUDIT EVIDENCE QUESTIONSQUESTION 3Specifically whygather evidence?Richard Clarke Academy aCOWtancy.com
    12. 12. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    13. 13. AUDIT EVIDENCE QUESTIONSANSWER ‣ UNDERSTAND THE ENTITY ‣ Assess controls ‣ Detect misstatementsRichard Clarke Academy aCOWtancy.com
    14. 14. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    15. 15. AUDIT EVIDENCE QUESTIONSQUESTION 4What are the 7ways of gatheringevidence?Richard Clarke Academy aCOWtancy.com
    16. 16. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    17. 17. AUDIT EVIDENCE QUESTIONSANSWER‣ Inspection‣ Observation‣ External confirmation‣ Re-calculation‣ Re-performance‣ Analytical Procedures‣ InquiryRichard Clarke Academy aCOWtancy.com
    18. 18. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    19. 19. AUDIT EVIDENCE QUESTIONSQUESTION 5What are analyticalprocedures?Richard Clarke Academy aCOWtancy.com
    20. 20. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    21. 21. AUDIT EVIDENCE QUESTIONSANSWER ‣ Analysis of trends & expectations ‣ Expected ratiosRichard Clarke Academy aCOWtancy.com
    22. 22. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    23. 23. AUDIT EVIDENCE QUESTIONSQUESTION 6Are analyticalprocedures enoughon their own?Richard Clarke Academy aCOWtancy.com
    24. 24. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    25. 25. AUDIT EVIDENCE QUESTIONSANSWER ‣ No ‣ Must corroborate other evidenceRichard Clarke Academy aCOWtancy.com
    26. 26. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    27. 27. AUDIT EVIDENCE QUESTIONSQUESTION 7When are analyticalprocedurescompulsory?Richard Clarke Academy aCOWtancy.com
    28. 28. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    29. 29. AUDIT EVIDENCE QUESTIONSANSWER ‣ Planning (risk assessment) ‣ ReviewRichard Clarke Academy aCOWtancy.com
    30. 30. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    31. 31. AUDIT EVIDENCE QUESTIONSQUESTION 8At the planningstage whatlimitations maythere be with AP?Richard Clarke Academy aCOWtancy.com
    32. 32. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    33. 33. AUDIT EVIDENCE QUESTIONSANSWER ‣ Prior to year end often ‣ Draft or projected figuresRichard Clarke Academy aCOWtancy.com
    34. 34. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    35. 35. AUDIT EVIDENCE QUESTIONSQUESTION 9Do managementrepresentationsoffer high or lowreliability?Richard Clarke Academy aCOWtancy.com
    36. 36. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    37. 37. AUDIT EVIDENCE QUESTIONSANSWER ‣ Low ‣ Only use if no other evidenceRichard Clarke Academy aCOWtancy.com
    38. 38. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    39. 39. AUDIT EVIDENCE QUESTIONSQUESTION 10What should wedefinitely getmanagementrepresentations on?Richard Clarke Academy aCOWtancy.com
    40. 40. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    41. 41. AUDIT EVIDENCE QUESTIONSANSWER ‣ They approve FS ‣ Controls are in place ‣ Misstatements are immaterialRichard Clarke Academy aCOWtancy.com
    42. 42. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    43. 43. AUDIT EVIDENCE QUESTIONSQUESTION 11When using expertswho hasresponsibility fortheir work?Richard Clarke Academy aCOWtancy.com
    44. 44. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    45. 45. AUDIT EVIDENCE QUESTIONSANSWER ‣ External Auditor stillRichard Clarke Academy aCOWtancy.com
    46. 46. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    47. 47. AUDIT EVIDENCE QUESTIONSQUESTION 12What must weconsider whenusing the expert?Richard Clarke Academy aCOWtancy.com
    48. 48. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    49. 49. AUDIT EVIDENCE QUESTIONSANSWER ‣ Competence ‣ Objectivity ‣ Scope ‣ EvidenceRichard Clarke Academy aCOWtancy.com
    50. 50. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    51. 51. AUDIT EVIDENCE QUESTIONSQUESTION 13What must beagreed in writingbefore using theexpert?Richard Clarke Academy aCOWtancy.com
    52. 52. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    53. 53. AUDIT EVIDENCE QUESTIONSANSWER ‣ Objective ‣ Scope ‣ Responsibilities ‣ Communication ‣ ConfidentialityRichard Clarke Academy aCOWtancy.com
    54. 54. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    55. 55. AUDIT EVIDENCE QUESTIONSQUESTION 14What must beconsidered whenthe experts work isgiven to us?Richard Clarke Academy aCOWtancy.com
    56. 56. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    57. 57. AUDIT EVIDENCE QUESTIONSANSWER ‣ Consistency with other evidence ‣ Assumptions used ‣ Source data and methods usedRichard Clarke Academy aCOWtancy.com
    58. 58. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    59. 59. AUDIT EVIDENCE QUESTIONSQUESTION 15Is there a referenceto the expert’swork in the auditreport?Richard Clarke Academy aCOWtancy.com
    60. 60. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    61. 61. AUDIT EVIDENCE QUESTIONSANSWER ‣ NoRichard Clarke Academy aCOWtancy.com
    62. 62. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    63. 63. AUDIT EVIDENCE QUESTIONSQUESTION 16When consideringusing internalauditor’s work -what must youknow about them?Richard Clarke Academy aCOWtancy.com
    64. 64. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    65. 65. AUDIT EVIDENCE QUESTIONSANSWER ‣ Status in company ‣ Scope of their work ‣ Competence ‣ Due professional careRichard Clarke Academy aCOWtancy.com
    66. 66. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    67. 67. AUDIT EVIDENCE QUESTIONSQUESTION 17How can theinternal audit andtheir work bereviewed?Richard Clarke Academy aCOWtancy.com
    68. 68. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    69. 69. AUDIT EVIDENCE QUESTIONSANSWER ‣ Have they been trained? ‣ Have they been supervised? ‣ Sufficient, appropriate evidence?Richard Clarke Academy aCOWtancy.com
    70. 70. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    71. 71. AUDIT EVIDENCE QUESTIONSQUESTION 18Another auditorshould be able todo what by lookingat your workingpapers?Richard Clarke Academy aCOWtancy.com
    72. 72. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    73. 73. AUDIT EVIDENCE QUESTIONSANSWER ‣ Re-perform the workRichard Clarke Academy aCOWtancy.com
    74. 74. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    75. 75. AUDIT EVIDENCE QUESTIONSQUESTION 19How can you checkif all related partieshave beenidentified?Richard Clarke Academy aCOWtancy.com
    76. 76. AUDIT EVIDENCE QUESTIONSRichard Clarke Academy aCOWtancy.com
    77. 77. AUDIT EVIDENCE QUESTIONSANSWER ‣ Check management procedures ‣ Inquire of management ‣ Shareholder records ‣ Tax returns ‣ Minutes ‣ Ask other auditorsRichard Clarke Academy aCOWtancy.com

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