audit evidence

Quick Reference

The evidence required by an auditor on which to base an audit opinion on the financial statements of the company whose accounts are being audited. Sources of information include the accounting systems and the underlying documentation of the enterprise, its tangible assets, management and employees, its customers, suppliers, and any other third parties who have dealings with, or knowledge of, the enterprise or its business. The evidence will be obtained by means of compliance tests (tests of controls) and substantive tests (tests of details and analytical review). Techniques involved in gathering the evidence include inspection, observation, enquiry, analysis, and computer-assisted audit techniques.

Subjects: Accounting.

Reference entries