Audit Evidence Case Study

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1.1 Types of Audit Evidence According to Alvin A.Arens.et al (2008) audit evidence is the information used by the auditor to determine whether the information being audited is in accordance with established criteria. The auditor must be qualified to understand the criteria used and competent to know the types and amount of evidence to accumulate to reach a proper conclusion after evidence has been examined. To decide which type of audit evidence is used, there are seven broad categories of evidence which auditor can choose. So, I choose only a few based on my experience while doing an audit work. There are:- 1. Physical Examination This type is the inspection or count by the auditor of a tangible asset. Based on ISA 500, this is the objective…show more content…
According to Alvin A.Arens (2008), it is the auditor examination of the client‘s documents and records to substantiate information that is should include in financial statements. Besides, the purpose that document should examine by the auditor which already record used by client is to provide information for conducting its business in correct way. Documents can be conveniently classified as internal and external. Such as internal document is the one that has prepared and used by within the client’s organization and is retained without ever going to outside party such as customer. For external document, is the one that has been in the hands of someone outside the client’s organization who is a party to the transactions being documented, but which either currently in the hands of client or readability…show more content…
Although much evidence is obtained through inquiry, it can be regarded as conclusive and may be biased in the client’s favor. It was the way auditor gets the information or oral information from the client in response to questions from the auditor. Although considerable evidence is obtained from client through inquiry, it usually cannot be conclusive and trust because it is not from third and independence source and may not reliable. Consequently, when auditor obtains evidence through inquiry, it is normally necessary to obtain further validating evidence through other procedures. As sample, when the auditor wants to obtain information related to client’s method of recording and controlling accounting transactions, the auditor usually begins by asking the client how the internal controls in company are operated. Next, documentation and observation will be performs by auditor to determine whether transactions are recorded in a good manner. For my experience at Aljafree & Co, I also make inquiry to client. I ask the client regarding how about the internal control system for sales in diesel project because it were high amount and I want to know how the sales are count because I want to make sure that information that I get is accurate and

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