Audit Evidence

and
Audit Documentation
Audit Evidence
(PSA 500)
OBJECTIVE

 Design and perform audit procedures to

obtain sufficient appropriate audit evidence on
which to base the auditor’s opinion.
REQUIREMENTS
 Sufficient Appropriate Audit Evidence
 Audit procedures include inspection, observation, confirmation,
recalculation, re-performance and analytical procedures, in addition to
inquiry.

 Sufficiency is the measure of the quantity of audit evidence.

 Appropriateness is the measure of the quality of audit evidence.

REQUIREMENTS
 Information to be Used as Audit Evidence
 Relevance and reliability

 Information to be used
o Prepared by the management’s expert; or
o Produced by the entity
REQUIREMENTS
 Selecting Items for Testing to Obtain Audit Evidence
 Selecting all items (100% examination)

 Selecting specific items

 Audit Sampling
REQUIREMENTS
Inconsistency in, or Doubts over Reliability of, Audit
Evidence
 PSA 230 includes a specific documentation requirement if the auditor
identified information that is inconsistent with the auditor’s final
conclusion regarding a significant matter.
Audit Documentation
(PSA 230)
OBJECTIVE

 To prepare documentation that provides:

 Sufficient and appropriate record of the basis for the auditor’s report.

 Evidence that the audit was planned and performed in accordance with
PSA and applicable legal requirements.
REQUIREMENTS
 Timely Preparation of Audit Documentation

The auditor shall prepare audit documentation on a timely

basis.
REQUIREMENTS
Documentation of the Audit Procedures Performed
and Audit Evidence Obtained
 The auditor shall prepare audit documentation that is sufficient to show
o The audit procedures performed to comply with PSAs
o Result of the audit procedures and the audit evidence obtained
o Significant matters arising during the audit
REQUIREMENTS

 Assembly of the Final Audit File