25 paragraphs found
Although external confirmations may provide relevant audit evidence relating to certain assertions, there are assertions for which external confirmations provide less relevant audit evidence. For example, external confirmation procedures may provide audit …
ASA 500 Audit Evidence requires the auditor to design and perform audit procedures that are appropriate in the circumstances for the purpose of obtaining sufficient appropriate audit evidence, and consider the relevance and reliability of information to …
If restrictive language limits the extent to which the auditor can rely on the bank confirmation response as audit evidence, additional or alternative audit procedures may need to be performed [23] . The nature and extent of such procedures depends on …
Professional scepticism is necessary to the critical assessment of audit evidence. For example, when dealing with unusual or unexpected responses to confirmation requests, such as a significant change in the number or timeliness of responses to bank …
The auditor evaluates the bank’s response to a bank confirmation request, whether electronic or paper-based, and determines whether the response provides relevant and reliable audit evidence, or whether further audit evidence is required. …
Being alert to the possibility of fraud may be particularly important when an external confirmation is the primary audit evidence for a material financial report item, particularly if the item itself is susceptible to fraud. This risk may arise, for …
The auditor may receive a confirmation response containing a disclaimer or restrictive language. Such restrictions do not necessarily invalidate the reliability of the response as audit evidence [22] . In general, the auditor may reasonably rely upon …
Whilst exceptions may exist, the reliability of audit evidence is generally increased when it is obtained from independent sources outside the entity, and obtained directly by the auditor. [5] However, even when audit evidence, such as a bank …
The auditor may need to carry out additional audit procedures. For example, it is generally unwarranted for the auditor to place sole reliance on the information obtained through a bank confirmation request to satisfy the completeness assertion. This may …
… This Guidance Statement has been formulated by the Auditing and Assurance Standards Board (AUASB) to provide …