In short
Auditors gather evidence through inspection of records and assets, observation, inquiry, external confirmation, recalculation, reperformance and analytical procedures.
Key takeaways
- Inquiry alone is never sufficient evidence, for tests of controls or for substantive tests.
- Reperformance, the auditor independently running a control, gives strong evidence about how it operates.
- Observation gives evidence only for the moment it happens.
Where it's tested
AUD: Evidence: Types & Procedures — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
The auditor's observation of the client's physical inventory count primarily provides evidence about: