BUS 426 Study Guide - Midterm Guide: Audit Evidence, Audit Risk, Internal Control

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 426
• Professor: Craig Emby

Document Summary

Audit evidence: be able to explain what is meant by saae. There is enough evidence of a high quality to form a conclusion with respect to the audit opinion. Auditor must be persuaded that his/her opinion is correct with a high level of assurance. In order to obtain the persuasiveness of evidence, the evidence has to be appropriate, sufficient, and timely. Relevant the pertinence of the evidence to the management assertion or audit objectives being tested. And, the evidence can be considered only in terms of specific audit objectives. Reliable: auditor"s dire(cid:272)t kno(cid:449)ledge, external evidence, qualification of information provider, consistency of multiple sources, effe(cid:272)ti(cid:448)eness of (cid:272)lient"s internal (cid:272)ontrol, degree of objectivity. The quantity of evidence, along with the degree of precision and the appropriate sample size. The most important factors to determine the sample size: the auditor"s e(cid:454)pe(cid:272)tation of errors (cid:894)%(cid:895, the effe(cid:272)ti(cid:448)eness of (cid:272)lient"s internal (cid:272)ontrol.