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Hi, so i am confused with why do we need audit evidence?? and how does it help us in audit ?? and
Want to know that where exactly do we require this audit evidence, i mean in which step??. Can someone clear my doubts regarding audit evidence please??Welcome to my forum! Please do not panic so! What do you know about audit? What have you read? If you download our notes you can search “audit evidence”.
On page 3, in the introduction to the syllabus it says:
“An audit of financial statements including evaluating internal controls, audit evidence and a review of the financial statements.”Then if you look at the illustration of an auditor’s report on page 32, the last sentence of the Basis of Opinion paragraph is:
“We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion.”A judge/jury cannot have an opinion on whether a defendant in a case is or is not guilty without sufficient evidence – to give any opinion/make any judgement needs to be based on something – evidence.
Read through the next page 33 to get the gist of what an audit is about.
Then look at the overview at the beginning of Chapter 7 (also 8) – this shows the audit process. Page 50 explains that audit evidence may be obtained by going down the left hand route (i.e. through testing controls) or the right-hand route (i.e. through substantive procedures).
Detail chapters on audit evidence start from Chapter 10 on page 60.
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