During a financial statement audit the auditor obtains an understanding of the entity and its environment (including its internal control), performs a risk assessment and from that work designs substantive procedures that will be responsive to the level of risk assessed. At the end of the audit, the auditor assesses the sufficiency and appropriateness of the audit evidence obtained to ensure that he/she has considered everything necessary to provide an opinion on the financial statements. This module addresses the characteristics of audit evidence and how the auditor evaluates the sufficiency and appropriateness of the evidence throughout the audit. (Please Note: This module is part of Surgent's Audit Skills Training: Level 5.)
Learning Objectives
- Describe the characteristics of audit evidence
- Discuss the sources of evidence
- Evaluate the sufficiency and appropriateness of evidence obtained from tests of controls
- Evaluate the sufficiency and appropriateness of evidence obtained during the audit
Major Topics
- SAS 142, Audit Evidence (recently issued)
- Relevance and reliability of audit evidence
- Sources of evidence
- Audit procedures
- Evaluation of tests of controls
- Evaluation of sufficiency and appropriateness of evidence
