ACC 521 Study Guide - Final Guide: Audit Evidence, Deferral, Risk Assessment
10 Feb 2016
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Document Summary
Understand and explain these essential terms and concepts. An essential feature of a f/s audit engagement is that an auditor must obtain independent evidence that supports the assertions in the f/s. The audit evidence obtained must be persuasive enough for the auditor to reach a well-reasoned conclusion that the f/s are not materially misstated. Recall the critical thinking process we looked at in chapter 3, and note how it too is based on logical argumentation. Auditors have six main types of evidence gathering techniques available in their tool kit. These are: inspection observation confirmation reperformance/recalculation analysis enquiry. The sources of relevant evidence include the auditee"s personnel, systems and procedures, physical assets, internal documents, external documents, external organizations, external experts, and various industry and economic research data. Audit procedures provide evidence that can support reasonable assurance. We will see that there are four main types of audit procedures: risk assessment procedures, control testing procedures, substantive procedures, and analytical procedures.
