2010F8 CH8 introduction to au [1]...

2010F8 CH8 introduction to au [1]... - Part C :Planning and...

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Unformatted text preview: Part C :Planning and risk assessment 6 risk assessment 7 audit planning and documentation 8 introduction to audit evidence 2 CH8 introduction to audit evidence Topic list Audit evidence FS assertions ISA500 A E 3 1 audit evidence 1.1 the need for audit evidence Key term: A E is all of the information used by the auditor in arriving at the conclusions on which the auditor’s opinion is based includes: the information contained in the accounting records …, and Other information gathered by the auditors… The extent of A E : Auditors are not expected to look at all the information Their will often select samples to test 4 1 audit evidence 1.2 sufficient, appropriate audit evidence Key term: Appropriateness: quality-----relevance & reliability Sufficiency: quantity----risk , quality Relationship: If E is high quality…may need less than poor…; A high quantity of poor quality E will not cancel out its poor quality. relevance Relevance: logical connection with the purpose of the audit procedure and the assertion The evidence gathered must cover the FS assertions quality or reliability… External auditor Entity ---------Control effective Written originals Sufficient -----  Sufficiency : …quantity…to support the audit opinion The quantity is affected by factors : Risk assessment Nature of accounting and internal control systems Materiality of the item...
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This note was uploaded on 06/21/2011 for the course MGMT 202 taught by Professor Yan during the Spring '11 term at Nanjing University.

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2010F8 CH8 introduction to au [1]... - Part C :Planning and...

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