To gain knowledge and understanding of obtaining audit evidence
To identify International Standards on Auditing (ISAs) relating to audit evidence
To apply knowledge gained to interactive questions
Session title: Obtaining evidence and the use of sampling
Aims & Objectives
To gain knowledge and understanding of obtaining audit evidence
To identify International Standards on Auditing (ISAs) relating to audit evidence
To apply knowledge gained to interactive questions
Introduction
In this session, we will look how evidence is collected by the assurance providers
What is this information about???
This information is from the accounting records which support the financial statements
assertions, and the information independently obtained by the assurance providers from
third parties for confirmation purposes.
The associated auditing standard is ISA 500: International Standard on Auditing -Audit
Evidence.
We will also look at sampling which is information available to the assurance provider from a
population of items in accordance with ISA (UK) 530: International Standard on Auditing -
Audit Sampling.
You will be required to do the selective worked examples and interactive questions in the
(ICAEW, 2019) Assurance Study Manual and Question Bank to give you a more
comprehensive application of the topics covered in the course pages.
At this level of your degree, it is expected that in addition to the course pages and tutor
support provided, you must carry out academic research work to give a wider knowledge and
understanding of the subjects covered in these course pages.
[2]
, Discussion Question
There are various ways the auditor can obtain information for audit evidence on internal
controls and transactions of a company.
Carry out research work on computer assisted audit techniques (CAAT).
Once you have done your research, share your ideas with your peers in the Discussion
Forum.
Time allowed for this activity: 1 hour
Glossary
N/A
Summary
In this session, we looked at how the auditor can gather audit evidence through sampling of
population such as account balances and financial statements transactions. Reference was
made to the associated auditing standard, ISA 500: International Standard on Auditing -Audit
Evidence.
We also looked at how to select a sample of items from given populations in accordance with
ISA (UK) 530: International Standard on Auditing - Audit Sampling. We learned that simple
selection of items for a sample can be done by statistical or non-statistical sampling
techniques.
You were required to do the selective worked examples and interactive questions in the
(ICAEW, 2019) Assurance Study Manual and Question Bank to give you a more
comprehensive application of the topics covered in the course pages.
Also, you were required to carry out academic research work to give a wider knowledge and
understanding of the subjects covered in these course pages.
In the next session, we will consider written representation from management.
[3]
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