Types of Audit Evidence
Analytical procedures should be applied to some extent for the purposes re- ferred to in (a) and (c) above for all audits of financial statements made in accordance with generally accepted auditing standards.
This section provides guidance about the confirmation process in audits performed in accordance with generally accepted auditing standards. This section— Defines the confirmation process (see paragraph .04). Discusses the relationship of confirmation procedures to the auditor's assessment of audit risk (see paragraphs .05 through .10).
Internal control documentation: Any records you keep or write-ups you do during the evaluation of the company’s internal controls are kept in the permanent file. Some CPA firms may keep this information with their current file, rather than in the permanent file. Verify correct placement with your audit supervisor.
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, re-performance, and analytical procedures, often in some combination, in addition to inquiry.
When using information produced by a service organization or a service auditor's report as audit evidence, see AU sec. 324, Service Organizations, and for integrated audits, see Auditing Standard No. 5, An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements.
Physical examination Is the inspection or count by the auditor of a tangible asset. Most often associated with inventory and cash, but it is also applicable to the verification of securities, notes receivable and tangible fixed assets.
When using information produced by a service organization or a service auditor's report as audit evidence, see AU sec. 324, Service Organizations, and for integrated audits, see Auditing Standard No. 5, An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements.