What are the 2 roles of audit evidence
- Support auditor during audit process as it attests to the confidence that the management is following the right procedures with respect to controls in place
- Quality is very important in supporting auditor’s viewpoint
What are the 3 factors determining quality of evidence
- Relevance
- is evidence applicable - Reliability
- is the evidence trustworthy and can it be relied on to reflect actual state - Sufficiency
-How well particular evidence addresses control activity
What are the 8 types of evidence IIICORRS
Inquiry
- least credible evidence
- adds on to evidence with independent source
Inspection of records
- reliability of record depends on source and if source comes from system independently it is more reliable than from auditee
Inspection of tangible assets
- ensure assets exists and condition is recorded
Confirmation
-From external source used to corroborate evidence from internal source
- evidence from system confirms source by auditee
Observation
- obtain evidence by observing processes and done by 2 ppl
Reperformance
- verify evidence by reperforming procedure
- to verify adequacy of control
Recalculation
- verify calculation by recalculating what is done by auditee
Scanning
- scan through large data sets for outliers
What are the 5 ways to obtain evidence IQBDE
- Interviews
- Questionnaires
- Benchmarking
- benchmark controls against other companies or standards - Data interrogation
- from CAAT - Extraction of system parameter
- retrieve system config manually or with tools
