According to auditor's operational standards, the auditor should obtain relevant, reliable and sufficient evidence to enable him draw reasonable conclusion.
Examples of audit evidence includes.
1. Primary audit evidence- evidence obtained within the organisation
2. Circumstantial audit evidence- evidence obtained by the auditor within the business through observing some procedures
3. Secondary audit evidence evidence obtained by the auditor from external sources
4. Hearsay audit evidence.-this is oral evidence which is obtained by the auditor through interviews and questionnaires.
Audit procedures that an auditor employs to arrive at audit evidence are as follows.
i). Analytical review
Is such a case, the auditor will inspect the two types of variances...
A) the situation that was expected to happen but did not happen
B)the situation that was not expected to happen but did
ii) computations and recomputations.this consists of auditors computing what the client has already computed
iii)Correlation- seeking internal consistence in records and accounts
iv)Retracing- this is where auditor checks posting of various transactions
V). Enquiries and making confirmations about those enquiries.
Vi). Inspection of all audit materials
Vii) making observation.
Moses maritim answered the question on September 11, 2017 at 18:01