Audit and assurance revision question NBAA May 2019.

Audit evidence can be obtained either through basic accounting records or documents obtained from third parties upon request by the auditor. This technique of obtaining information from the third part is normally referred to as direct confirmation.

REQUIRED:

(i) Discuss the quality of audit evidence generated by direct confirmation techniques, giving three examples where the techniques might be used.

(ii) Identify the sequence of steps involved when directly seeking debtors’ confirmation.

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