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Audit Evidence
- 1. Welcom e A presentation fromgroup 13 for the course of Audit and Inspection for Financial Institutions
- 2. Mohammad Abdullah-Al-Kafe Department ofBanking And Insurance 22nd Batch ID: 22-104-A Faculty of Business Studies University of Dhaka Created By…..
- 3. Persuasiveness Decisions Nature The nature ofaudit 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
- 4. Persuasiveness Decisions Nature Which What WhichWhen Audit Procedure Sample Items Perform
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- 6. Persuasiveness Decisions Nature Coming Up……….. Types ofAudit Evidence
- 7. Analytical Reperform Obs,Inq Documentation Confirmation Physical 1. Physical Examination: Itis the inspection or count by the auditor of a tangible asset. This type of evidence is most often associated with inventory and cash.
- 8. Analytical Reperform Obs,Inq Documentation Confirmation Physical 2. Confirmation: Confirmations arethird-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.
- 9. Analytical Reperform Obs,Inq Documentation Confirmation Physical 3. Documentation: It isthe auditor’s examination of the client’s documents and records. Internal Documents Prepared and used within client company. Does not go outside the client. External Documents Document has been in hands of an outside party to the transaction.
- 10. Analytical Reperform Obs,Inq Documentation Confirmation Physical 4.Observataion 5.Inquiresof Client Use one’s senses to assess client activities. Observation is rarely sufficient by itself. It is the obtaining of written or oral information from the client in response to questions from the auditor.
- 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.
- 12. Analytical Reperform Obs,Inq Documentation Confirmation Physical 7. Analytical Procedure: Evaluations of financial information by a study of plausible relationships among both financial and nonfinancial data. Required during the planning and completion phases on all audits.
- 13. Analytical Reperform Obs,Inq Documentation Confirmation Physical Objective 7.5 State thepurpose of analytical procedures and the timing of each purpose
- 14. Timing Purpose Purpose of analytical procedures Understandi ngthe 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 analyticalprocedure 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.
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