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Advantages of audit software.

Audit software is used to interrogate a client’s system. It can be either packaged, off-the-shelf software or it can be purpose written to work on a client’s system. The main advantage of these programs is that they can be used to scrutinize large volumes of data, which it would be inefficient to do manually. The programs can then present the … Read the rest

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Negative external confirmation – meaning

Negative external confirmation request: a request that the confirming party responds directly to the auditor only if the confirming party disagrees with the information provided in the request.

A negative confirmation request asks the respondent to reply only in the event of disagreement with the information provided

Negative confirmation requests are expected to provide less reliable audit evidence than the … Read the rest

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2 types of computer assisted audit techniques.

Computer-assisted audit techniques can be defined as any technique that enables the auditor to use Information technology systems as the source of gathering audit evidence.

The following are two types of computer-assisted audit techniques:

Test data

Test data involves the auditor submitting ‘dummy’ data into the client’s system to ensure that the system correctly processes … Read the rest

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.


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

(ii) … Read the rest

10 procedures for identifying related parties in audit (ISA 550)

Related parties are those parties considered to be related if one party has the ability to control or exercise significant influence over the other party in making financial decisions. A related party could be management, owner or any person who is in the position to influence an entity’s operating policies and financial position.

The following are procedures which audit may

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