What is persuasive evidence in auditing?

What is persuasive evidence in auditing?

Persuasive evidence is evidence that has the power to influence or persuade someone to believe in its truth.

What are the criteria considered by the auditor in gathering audit evidence?

A2. Most of the auditor’s work in forming the auditor’s opinion consists of obtaining and evaluating 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.

Which audit evidence is the most persuasive?

Although the bank statements are in the possession of the client, they originated outside of the client and, relative to the other responses, they are the most persuasive.

What are the requirements for 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 examples of persuasive evidence?

What’s the difference? Persuasive evidence tips the scale one way or the other and provides you with a basis beyond a reasonable doubt for forming an opinion. Here’s an example of persuasive evidence: Your job is to verify the current accounts receivable balance of $50,000.

What is the most convincing type of evidence?

And as far as I know, at the moment, scientific consensus is that statistical and causal evidence are much more persuasive than storytelling. But, as far as evidence is concerned, statistical and causal evidence is much stronger. We can conclude that stories overall are the least persuasive kind of evidence.

What are the types of audit evidence?

In this chapter, let us understand the different types of evidence used in Auditing.

• Accounting System. Accounting System of an organization must be reliable.
• Physical Evidence.
• Documentary Evidence.
• Journals and Ledgers.
• Oral Evidence.
• Subsequent Events.
• Circumstantial Evidence.
• Ratios.

What is external confirmation in auditing?

External confirmation is the process of obtaining and evaluating audit evidence through a representation of information or an existing condition directly from a third party in response to a request for information about a particular item affecting assertions in the financial statements or related disclosures.

Why should audit evidence be persuasive?

AUDIT EVIDENCE IS GENERALLY PERSUASIVE RATHER THAN CONCLUSIVE. This is because generally it is difficult to obtain conclusive evidence.

What general criteria can an auditor apply to evaluate the competence of evidence?

The competence of the audit evidence

• Relevance: You measure relevance by assessing the relationship between the documentation and the management assertion you’re testing.
• Reliability: You measure reliability by deciding whether the evidence is credible.

  What is appropriate audit evidence?

  Which of the following is the most reliable type of evidence?

  Answer: A. Confirmation of accounts receivable balance. Confirmation of accounts receivable balance is considered to be the most reliable because it…