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Is it right to say audit evidence is required for the following:-
To obtain an understandg of the entity to evalute risk of material mistatement
To determine the materiality level
To establish audit plan ie futher audit procedures to b performd
To test the operating effectiveness of internal controlsISA 500 defines audit evidence as “Audit evidence – Information used by the auditor in arriving at the conclusions on which the auditor’s opinion is based. Audit evidence includes both information contained in the accounting records underlying the financial statements and other information.”
Therefore your list could be fitted into that definition. However, often the term ‘audit evidence’ is used to talk about evidence that directly supports the assertions or the operation of internal controls. It is a bit unusual (though not wrong) to refer to ‘understanding the entity’ as audit evidence.
ISA 500 defines audit evidence as “Audit evidence – Information used by the auditor in arriving at the conclusions on which the auditor’s opinion is based. Audit evidence includes both information contained in the accounting records underlying the financial statements and other information.”
Therefore your list could be fitted into that definition. However, often the term ‘audit evidence’ is used to talk about evidence that directly supports the assertions or the operation of internal controls. It is a bit unusual (though not wrong) to refer to ‘understanding the entity’ as audit evidence.
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