3. Persuasiveness
Decisions
Nature
The nature of audit evidence
refers to the form of the
evidence you’re looking at
during the audit
Contrasted with legal and
Scientific document
Use of evidence is not
unique
8. Analytical
Reperform
Obs,Inq
Documentation
Confirmation
Physical
2. Confirmation:
Confirmations are third-party assurances received
directly by the auditor. Auditor has client request that the
third party respond directly to the auditor.
Positive
Confirmations
Asks for response
even if balance is
correct.
More reliable than
negative
confirmations.
Negative
Confirmations
Asks for a response
only if balance is
incorrect.
Uncertainty
associated with no
response.
11. Analytical
Reperform
Obs,Inq
Documentation
Confirmation
Physical
6. Reperformance & Recalculation:
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.
Recalculation involves rechecking a sample of
Calculations made by the client. Rechecking
of calculation means testing
mathematical accuracy.
14. Timing
Purpose
Purpose of analytical
procedures
Understandi
ng the
client’s
industry and
business
Assessment of
the entity’s
ability to
continue as a
going concern
I
Indication of
the presence
of possible
misstatemen
ts in the
financial
statements
Reduction
of detailed
audit tests
15. Timing
Purpose
Timing of analytical procedure
Planning phase
- As a part of risk management to understand
the client’s business and industry
Testing phase
- As substantive tests in support of an account balance.
Completion phase
-Serving as a final review for material misstatements.