In performing financial statement audits, auditors gather and evaluate audit evidence to form an opinion. Their opinion is whether the statements follow the proper criteria. Usually, the criteria are GAAP. Auditors should gather enough evidence to offer a basis for their opinion.
The ability to evaluate evidence appropriately is an important skill that an auditor must develop. Proper evaluation of evidence requires that the auditor understand the types of evidence that are available and the relative reliability. Various types of evidence may be gathered during the risk assessment procedures, test of controls, or substantive process. The type of evidence depends on the context in which the auditor applies it. Select 5 methods from the types of evidence list below to gather evidence and do the following:
Describe the type of evidence.
Provide an example of how the evidence could be used.
Types of evidence:
Inspection of records or documents
Inspection of tangible assets
Submitting your assignment in APA format means, at a minimum, you will need the following:
Title page: Remember the running head. The title should be in all capitals.
Length: 5 pages minimum
Abstract: This is a summary of your paper, not an introduction. Begin writing in third person.
Body: This begins on the page following the title page and abstract page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics, except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is 5 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usage as appropriate for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.
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