Hi Mike,
Can help me check if I have correctly stated audit evidence (AE) for the following audit procedures (AP) :
Audit of insurance claim:
1) AP: enquire the basis of amount claimed and review any supporting documentation e.g. Mgmt accounts showing loss.
AE: agreement of amount claimed to total loss shown in mgmt accounts
2) AP: review correspondence between the co. and the insurance provider, looking for confirmation of any amounts to be paid.
AE: correspondences between company and insurance provider on amount to be paid
3) AP: contact the co lawyer to enquire if there is legal issue on insurance claim
AE: documentation on any legal issues with regards to insurance claim from company lawyer
Please correct me if I am wrong. Thank u so much for your help.
Ask the Tutor ACCA AAA
Audit evidence VS Audit procedure
"AE: correspondences between company ..."
Put in there "copy of correspondence ..."
And again "AE: documentation on any legal ..." put in "copy of ..."
Just remember that procedures start with verbs whereas evidence starts with nouns
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