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Can you tell whats the difference in answer approach when a question says
“State the audit evidence you expect to find” and “Substantive procedures to be performed”Audit evidence is looking for supporting documentation on the audit file
Procedures are those actions that the auditor must take in the process of accumulating audit evidence
So evidence is factual whereas procedures are activities
Read some answers and you’ll soon get the hang of it … but you positively MUST get the hang of it because the examiner has stated that, where a student answers in the form of procedures to be performed where the question was looking for audit evidence to be expected, that student (really, those students … hundreds of them!) score zero marks
OK?
Yes thank you I got the idea of it
But zero marks for that mistake! :O
That’s a little harsh dont you thinkI saw some of the answers in relation to “state the audit evidence you expect to find”.
Few answers include like ‘Observation of the procedure being performed’ , ‘Physical inspection of the asset’, etc.
How can such evidence be found on an audit file? Aren’t these procedures?
They would be procedures if they were slightly differently worded …
… observe the procedure being performed
… physically inspect the asset
If you try to remember that evidence is the end product of a procedure, you can easily convert those two points above into evidence (I’ve converted them into procedure already)
So you would have …
… ‘There should be evidence on file to confirm that the procedure was being performed in accordance with the company’s systems’
… ‘There should be a schedule on file that indicates that the asset was physically inspected’
You may want to re-read those answers where you believe that you have read those quotations – you can see that the procedure is closely associated with the evidence
If you think about it the evidence can only be obtained as a result of carrying out a procedure and …
… a procedure will invariably result in the recording of evidence
OK?
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