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Unformatted text preview: Chapter 7: Audit Evidence Evidence : information used by the auditor to determine whether information being audited is stated in accordance with the established criteria Evidence includes information that is highly persuasive and less persuasive Six key characteristics of evidence : use of evidence (determine if financial statements are fairly presented), nature of evidence needed, (various types of audit evidence generated by auditor, 3 rd parties, and client, party(s) evaluating evidence (auditor), certainty of conclusion from evidence (high level of assurance) nature of conclusions (issue one of several reports), typical consequence from incorrect conclusion from evidence (users make incorrect decision and auditor may be sued) Decisions when gathering evidence : *Which audit procedure to use *What sample size to select *Which items to select from the population *When to perform the procedure Audit procedure : the detailed instruction that explains the audit evidence to be obtained during the audit- spell out...
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This note was uploaded on 04/20/2010 for the course BA 464 taught by Professor Kien-quocvanpham during the Spring '10 term at Humboldt State University.
- Spring '10