At the same time the inspection of the document may not provide evidence in respect of the assertions of ownership and valuation of the asset. As explained in CASaudit evidence obtained from previous audits may, in certain circumstances, provide appropriate audit evidence where the auditor performs audit procedures to establish its continuing relevance.
Observation is instead an audit procedure that consists of looking at a process or procedure being performed by others so that evidence about the actual performance is obtained. Accuracy and valuation: This assertion concerning the accuracy of the information disclosed in or noted to the financial statements.
For example, management confirmation in the form of email is more reliable than the confirmation by verbal. Photocopies In most circumstances, photocopies of source documents are legally acceptable.
However audit evidence from different sources or of a different nature may be relevant to the same assertion. Completeness To form an opinion as to whether all assets, liabilities and equity interests that should have been recorded have been recorded.
In many cases a single type of procedure may not verify an assertion relating to an item and a combination of procedures will be needed to that affect.
External confirmation is audit evidence that is obtained as a direct written response to the auditor from a third party the confirming party in paper form, electronic medium or other medium.