What is competent audit evidence?
The competence of the audit evidence Competence refers to the quality of the audit evidence, regardless of whether the evidence is written, oral, or observed. The term competence also refers to whether the audit evidence is relevant to the work you’re doing and whether it’s reliable.
What are the 4 types of audit evidence?
What Are the Types of Audit Evidence?
- Physical examination.
- Confirmations.
- Documentary evidence.
- Analytical procedures.
- Oral evidence.
- Accounting system.
- Reperformance.
- Observatory evidence.
What are SAPs in audit?
The Statements of Audit Procedure (SAPs) are used by Finance audit staff for guidance on various audit-related matters. While not normally distributed outside the agency, they can be useful in understanding the audit process.
What is auditor competence?
Auditor competence is demonstrated by personal attributes, the ability to apply knowledge and skills, experience, continued development, and assessment. The assessment of auditors may include reviewing records, gathering feedback or observing audits.
What are examples of audit evidence?
Examples of auditing evidence include bank accounts, management accounts, payrolls, bank statements, invoices, and receipts. Good auditing evidence should be sufficient, reliable, provided from an appropriate source, and relevant to the audit at hand.
What are the 4 characteristics of evidence?
It is, in short, relevant, verifiable, representative, and actionable. It is important to note that evidence per se does not lead to confirmations of value and quality.
What are SAP statements?
Statements of Audit Procedures (SAPs) – General Policies and Procedures. The Statements of Audit Procedure (SAPs) are used by Finance audit staff for guidance on various audit-related matters. While not normally distributed outside the agency, they can be useful in understanding the audit process.
Is recalculation an analytical procedure?
Those five audit procedures include Analytical review, inquiry, observation, inspection, and recalculation.
Why is competence important in auditing?
The higher the competency of an auditor will affect the auditor in reporting the client error. The auditor will also have a good audit quality when understanding the client’s information system, so audit reporting will also get better.
What is the best type of audit evidence?
What are the requirements of audit evidence?
Appropriateness is the measure of the quality of audit evidence, i.e., its relevance and reliability. To be appropriate, audit evidence must be both relevant and reliable in providing support for the conclusions on which the auditor’s opinion is based.
What are the elements of audit evidence?
Sufficient appropriate audit evidence They can include inspection, observation, confirmation, recalculation, reperformance and analytical procedures, in addition to inquiry, as the latter does not normally provide sufficient audit evidence on its own.
How do auditors gather evidence?
Audit procedures to obtain audit evidence can include inspection, observation, confirmation, recalculation, reperformance and analytical procedures, often in some combination, in addition to inquiry.
What is the difference between recalculation and Reperformance?
Reperformance is an audit procedure in which the auditor independently repeats an activity that the audit client has done, normally as part of the client’s internal control system. Recalculation involves doing a calculation the client has done to check its mathematical accuracy.
What is competence in internal audit?
Generally speaking, internal audit competencies fall into one of three broad areas: Technical auditing or accounting skills; Skills relating to critical thinking and business understanding; and. Interpersonal and communication skills.
How are competencies and skills relevant in conducting an audit?
Core Skills and Competencies for Internal Auditors Communication skills, including oral communication, report writing, and presentation skills. Problem-solving skills (i.e., conceptual and analytical thinking) Ability to promote the value of internal audit among key employees within the organization.
Which of the following is a method of obtaining audit evidence?
Audit procedures to obtain audit evidence can include inspection, observation, confirmation, recalculation, reperformance, and analytical procedures, often in some combination, in addition to inquiry.
What are the two types of audit evidence used by the auditor?
The auditor can obtain different types of audit evidence, including physical examination, documentation, analytical procedure, observations, confirmations, inquiries, etc.
Which is the most reliable source of audit evidence?
Audit evidence provided by original documents is more reliable than audit evidence provided by photocopies or facsimiles, or documents that have been filmed, digitised or otherwise transformed into electronic form.