ADMN 4301H Chapter Notes - Chapter 5: Audit Risk, Financial Statement, Positive Form

• School: Trent University
• Department: Business Administration
• Course: ADMN 4301H
• Professor: Sharla Trudell

Document Summary

Audit evidence: evidence is the information that an auditor uses when arriving at their opinion on the fair presentation of their client"s financial statements (cas 500, auditor must gather sufficient appropriate evidence. Sufficiency relates to quantity of evidence: appropriateness relates to quality of evidence, audit risk determines what evidence is required. In evaluating reliability of information the auditor should consider: Source of information, specifically, independence of external third parties: expertise of respondent, consistency of information. Includes data held on client"s computer, emails to auditor, and scans and faxes: no paper trail, auditor needs to consider the internal controls in place, including the quality of client"s computer system when assessing reliability of this evidence. Persuasiveness of audit evidence: auditor is seeking evidence to corroborate client"s recorded transactions and balances, greater corroboration is provided by more persuasive evidence, evidence types vary in persuasiveness.