What do auditors do if they discover information that is inaccurate?
For fraud that has a material effect on the financial statements, the auditor should discuss the matter and any further investigation with an appropriate level of management, determine its effect on the financial statements and the auditors report, report it directly to the audit committee and suggest the client
Under what circumstances the auditor should not accept an audit engagement?
Audit engagement should not be accepted under following circumstances: Serious limitations on scope. Financial reporting framework is unacceptable. Management refuses to provide agreement that it acknowledges its responsibility as regards financial statements.
Under what circumstances would the auditor request the accounts to be adjusted for individually immaterial errors?
ASA 320 requires an auditor to assess whether the uncorrected misstatements that have beenidentified during the audit are material individually or in aggregate. Therefore when errorsare individually immaterial but are collectively material all the errors should be adjusted for.
What is sufficient appropriate audit evidence?
Sufficient appropriate audit evidence is said to have been obtained if the audit risk is reduced by the auditor (through application of audit procedures) to such level that enables the auditor to draw reasonable inferences on which ultimately auditor’s opinion will be based.
What are the pre conditions for an audit?
ISA 210 defines preconditions for an audit as follows: ‘The use by management of an acceptable financial reporting framework in the preparation of the financial statements and the agreement of management and, where appropriate, those charged with governance to the premise on which an audit is conducted‘.
What factors should an auditor consider prior to accepting an engagement?
Assuming independence and requisite technical abilities, the pre- acceptance evaluation of a prospective audit engagement normally focuses on three factors: 1) personal integrity of the prospective client’s management and principals, 2) presence of circumstances pointing towards unusual risks in the engagement or
Which of the following is the most reliable type of audit evidence?
(1) Information obtained indirectly from outside sources is the most reliable audit evidence.
What evidence is appropriate to determine whether recorded purchase transactions are valid?
What evidence is appropriate to determine whether recorded purchase transactions are valid and the vendors charged the correct prices? Receiving reports and purchase orders.
What is the most reliable type of evidence?
Information obtained indirectly from outside sources is the most reliable audit evidence. An effective internal control system provides more reliable audit evidence.
Which of the following is a type of audit?
There are three main types of audits: external audits, internal audits, and Internal Revenue Service (IRS) audits. External audits are commonly performed by Certified Public Accounting (CPA) firms and result in an auditor’s opinion which is included in the audit report.
Which of the following is a type of audit procedure?
It is mainly of two types – substantive and analytical procedures. Depending on risk assessment, auditor applies audit procedures. These help an auditor to plan audit and accordingly invest time for obtaining audit evidence.
What are the 4 types of evidence?
There are four types of evidence recognized by the courts and we will take a look at them today. The four types of evidence recognized by the courts include demonstrative, real, testimonial and documentary.
What is reliable evidence?
Competent and reliable evidence means tests, analyses, research, studies, or other evidence based on the expertise of professionals in the relevant area, that (1) have been conducted and evaluated in an objective manner by qualified persons and (2) are generally accepted in the profession to yield accurate and reliable
What is the reliability of evidence?
The reliability of evidence refers to the degree to which evidence is considered believable or trustworthy.
What are the two major types of evidence?
There are two types of evidence; namely, direct evidence and circumstantial evidence.
What can be used as evidence?
Real evidence, often called physical evidence, consists of material items involved in a case, objects and things the jury can physically hold and inspect. Examples of real evidence include fingerprints, blood samples, DNA, a knife, a gun, and other physical objects.
How can you be found guilty without evidence?
The simple answer is, “no.” You cannot be convicted of a crime without evidence. You cannot be convicted of a federal crime. If there is no evidence against you, under the law, it simply is not possible for the prosecutor’s office to obtain a conviction at trial.
What are the 7 types of evidence?
Terms in this set (7)
- Personal Experience. To use an event that happened in your life to explain or support a claim.
- Statistics/Research/Known Facts. To use accurate data to support your claim.
- Hypothetical Situations.
What evidence Cannot be used in court?
Evidence that can not be presented to the jury or decision maker for any of a variety of reasons: it was improperly obtained, it is prejudicial (the prejudicial value outweighs the probative value), it is hearsay, it is not relevant to the case, etc.
Can you be prosecuted without evidence?
No competent prosecutor will take a case to trial without some form of evidence. In the absence of evidence, a person cannot be convicted.