STANDARDS ON AUDITING SA 500 "Audit Evidence" in Accounting (Meaning ~ Information in arriving conclusion to form opi cord (Both Financial Information and Other information) (ii) Audit Procedure to obtain Audit Evidence Auditor shall design Audit procedure to obtain sufficient and appropriate audit evidence, sor Sailer Qoints 60 an sse Risk Assessment Procedure Other Procedure SA 330 ‘Tesf of Control / ‘Substantive Pra Compliance Procedure/SA 315 Test of detail Analytical Procedure (SA 520) Test i= Test of Balande + Vous Verifeation (OVEP) Hethol of Caitecting Bubtt Cvideoce (lid) Various Audit procedure to obtain Au compliance & Substance procedure Evidence/Obtaining Audit Evidence in performing > Inspection Gpinazert > Observation (Physical verification) > Extemal Confirmation (SA 505) > Recaloulation (Depreciation, Provision for tax) ; > Re performance (ICS, Bank Reconciliation) Hin Ba dais Bluestion . > Inquiry (From Knowledgeable person) Crcturty g@moeyer Cast J Arata Procedure (SA 52) ay Retuony by Gretaryg Emre db amt. Gypert () 5). (yGratuty Valuation Based on certificate by qualified actuary. Retirement age different. \ =|" Company considering increase in age. Comment. Z 7 |GuUse report of actuary as audit evidence. How to enable work of actuary? { |@::Group gratuity valuable by actuary shows wide variation compared to previous years figures. Deg YL Howto deal? , po = Evaluating / using the work of(management Expert) {As per SA 500, When information to be used as Audit evidence is prepared using Work of Mgt: expert the auditor shall to the extent necessary for auditor's purpos Ste? 4> (a) Evaluat ence, capability & objectivity of that expert rer 2-9 (b) Obtain iding of work of that expert. $7EP 3+ (c) Evaluate the appropriateness of expert's work as audit evidence BY CA ATUL AGARWAL AIR 1.CA FINAL Page 23,beg, urbe Sters> STANDARDS ON AUDITING he ORY Gangetene,| Aueitor may obtain information regarding competence capability and lemmas variety of souraes billy |) or p previous work of that expert Dbjeehvily with expert work 0: > | Pablished paper or book writen by tha expert Sep Onda} Aspe of mat Expet ld may include what (sumptions and rethods)are used by mgt. expert and ‘wert 2 | whether they arqgenerally acceptedgwithin expert field “The auditor (may also consider the following While evalualing appropriateness of Mat exert work as ‘) Gree 37 \ audit evidence: Qreviler uorngh 8s of(expert findings & Conclusion)their consistency with other audit | an S valooleas Oidenee & whether appropriately Gera in FS. ss ope We) Gy rfexpert work involves use eri amaemmmaech * expert of these assumption & methods. rn - lev (ii) 1fexpert work involves use of ures dala Yelevance, completeness & accuracy of source data. — |! Gop (Pans) | Assumptions [+ | Methods SC O9 Relevance urklle-Time) _ | —— — Gened [eyhocien) || as Qlwons ] | 29 RAewence CSurtble as I Releverce Curtotle + | Ly Recwrery || Thdbasey [Chveomstnea? || Yr contract | FRE | o> Comgleteness | by Reasonoblen« |‘ Reasonebte Lo Ceram | LD Bestaniiitestt 1 Consist th ether Judy Svidroe d o> Reet An SS pee FIR quatin 1s Silent use Con asseme “HS torogenend Expert N Such Otsonption Should clenty Noe writen BY CA ATUL AGARWAL ' AIR 1 CA FINAL Page 24