Chapter 5 - Audit objectives and evidence

Last modified on Thursday, 11-Feb-1999 12:41:06 CST

The key concepts of this chapter:

The Concept of Audit Assertions

The 5 assertions are

Audit Evidence

To be sure that their are no material misstatements, the auditor gathers evidence. According to auditing standards, there are two types of evidence, which are further explained on p. 150, Figure 5-2.

How much evidence does the auditor need? Auditing standards are very clear on this. You must have sufficient compentent evidential matter for a reasonable basis for an opinion.

Audit Procedures

Audits are conducted in various phases. In each phase, certain procedures are often used.

Obtain understanding of internal control

Tests of controls

Substantive tests