Gathering Sufficient Appropriate Audit Evidence

This chapter introduces the evidence framework that supports the rest of AUD. It explains what makes evidence sufficient and appropriate, how different procedures produce different forms of support, and how the results are documented.

In This Chapter

• Choosing Between Tests of Controls and Substantive Procedures distinguishes the two main evidence paths used throughout the audit.
• Using Audit Sampling to Gather Evidence Efficiently explains how auditors test enough items without testing everything.
• Collecting Evidence Through Observation, Inquiry, Inspection, and Confirmation covers the classic evidence sources and when each one is strongest.
• Applying Analytical Procedures and Data Analytics in Audit Testing adds comparison-based and technology-enabled testing approaches.
• Preparing Working Papers and Documenting Audit Results explains how evidence, judgment, and conclusions are preserved in the file.

How to Use This Chapter

• Read this chapter before the more account-specific testing chapters because it establishes the evidence toolkit.
• Focus on why one procedure produces stronger support than another for a given assertion.
• Return here whenever an AUD question turns on evidence quality, sampling, or documentation.

In this section

• Choosing Between Tests of Controls and Substantive Procedures
  How auditors choose between tests of controls and substantive procedures when designing evidence.
• Using Audit Sampling to Gather Evidence Efficiently
  How audit sampling supports sufficient evidence while controlling engagement efficiency and sampling risk.
• Collecting Evidence Through Observation, Inquiry, Inspection, and Confirmation
  How observation, inquiry, inspection, and confirmation provide different strengths of audit evidence.
• Applying Analytical Procedures and Data Analytics in Audit Testing
  How auditors use analytical procedures and data analytics to identify anomalies and support testing.
• Preparing Working Papers and Documenting Audit Results
  How working papers document procedures, evidence, conclusions, review, and retention requirements.