Audit evidence is gathered through all stages of an audit from source documents, accounting records, and corroborating information. It serves three main purposes: to confirm the auditor's understanding of the client's system; to assess how the system fits within the organization; and to provide a basis for evaluating internal controls. There are several types of audit evidence, including physical examination, confirmation, documentation, analytical procedures, inquiries, reperformance, and observation.

2. Audit evidence will comprise source
documents and accounting
records underlying the financial
report, and corroborating
information from other sources.
Audit evidence is gathered through
all stages of an audit.

3. 6.1.2 THE PURPOSE OF
AUDIT EVIDENCE

4.  To confirm The audiTor’s
understanding about the system
formulating clear prossess/ system
objectives.
 Established to measure how the
system fits within the organisation.
 To provide a basis foR assessing the
extent to which internal controls
prevent or detect and corrects
errors.

5. 6.1.3 Differentiate types
OF AUDIT evidence

6.  Physical examination
 Confirmation
 Documentation
 Analytical procedures
 Inquiries of the client directly
from the auditor
 Reperfomance
 Observation

7.  EXAMINATION Of tangible assets such
as inventory, cash or fixed assets
 Is a way to verify that an assets
exits or to verify its condition but
not to determine whether the
client owns the assets.

8.  Is the receipt of a written or oral
response from and independent third
party verifying information requested
by the auditor.
 Positive confirmation asks the
respondent to provide an answer in
all circumstance
 Negative confirmation asks for a
response only if the information is
incorrect

9.  consisTs of The clienT’s business
documents used to support
accounting events. A strength of
documentation is that it is
prevalent and available low cost.
 Documents can be internal and
external garneted.

10. Internal documents provide less
reliable evidence than external
ones, parTicularly if The clienT’s
internal control suspect.
If documents that are external
and have been prepared by
qualified individuals such as
attorneys or insurance brokers
provide additional reliability.

11.  undersTand The clienT’s indusTry
and business.
 assess The enTiTy’s abiliTy To
continue as a going concern
 Indicate the presence of possible
misstatements in the financial
statements
 Reduce detailed audit tests

12.  Response oral or written obtained
from client personnel to questions
raised by auditor.
 when the auditor obtain evidence
through inquiry, the auditor
should normally obtain further
corroborating evidence.

13.  This audit evidence gathering
technique involves rechecking or
recalculating a sample of
computation and transfer of
information made by the client
during the period under audit.
 Recheking of transfer of
information comprise checking of
to see information has been posted
correctly and consistently to
appropriate.

14.  It is the use of the sense to assess
client activities.
 The auditor may tour the plant to
obtain a general impression of the
clients facilities.