sufficient appropriate audit evidence

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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

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Sequence of steps involved when directly seeking debtors’ confirmation.

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.

The sequence of steps involved in debtors’ circularization process.

(1) Obtain a written permission from management to write the circularization letters,

(2) Write … Read the rest

Key points from ISA 200 (Overall objective of independent auditor and the conduct of an audit in accordance with ISAs

Key points from ISA 200 (Overall objective of the independent auditor and the conduct of an audit in accordance with ISAs).

After reading ISA 200 here are key points I have taken from it:

This international standard on Auditing (ISA) deals with an independent auditor’s overall responsibilities when conducting an audit of financial statements in accordance with ISAs

ISA 200 explains the scope, authority, and structure of ISAs.

ISAs are written in the context of an audit of financial statements by … 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.

REQUIRED:

(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

The process of obtaining external confirmation.

ISA 505 “External Confirmation” deals with the auditor’s use of external confirmation procedures to obtain audit evidence.
ISA 505 defined external confirmation as audit evidence obtained as a direct written response to the auditor from a third party (the confirming party). In paper form or by electronic or other media.

Process of obtaining external conformation:

  • Determining the information to be
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