BUS 426 Chapter Notes - Chapter 6: Audit Evidence, Asset, Test Data

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 426
• Professor: Michael Favere- Marchesi

Document Summary

Audit program: detailed instructions for the entire collection of evidence for an audit area or an entire audit, an audit program in every component of the audit (ex: sales and collections) Identifying risks by assertion: which account might be at risk. Audit procedures: what audit type of collection to use for evidence. Sufficiency: the quantity of evidence, appropriate sample size. Appropriateness: the degree to which evidence can be considered relevant and reliable: relevant evidence: the relationship of the evidence to the audit objective being tested, reliability of evidence: evidence is reliable when it is obtained from: Qualified providers such as law firms and banks. Objective sources: (not subjective evidence) ex: bank confirmations, physical count of inventory. Timeliness: the timing of audit evidence in relation to the period covered by the audit. Inspection: physical count of a tangible asset or inspection of a document. Observation: use of senses to assess certain activities.