Audit Evidence and Audit Procedures and Documentation

AUDIT EVIDENCE Most of the work of the independent auditor in order to provide an opinion on these financial statements consist of efforts to obtain and evaluate audit evidence. The size of validity (validity) for the purpose of audit evidence depends on the independent auditor's judgment, in this case the audit evidence (audit evidence) is different from the law of evidence (legal evidence) which is expressly governed by strict rules. Audit evidence varies greatly affect the conclusions drawn by an independent auditor in order to provide an opinion on the audited financial statements. The relevance, objectivity, timeliness, and the presence of other audit evidence that strengthens the conclusion, all affect the competence of evidence. nature of the assertions Assertion (assertion) is a management statement contained in the components of financial statements. The statement may be implicit or explicit, and can be classified as follows: Existence or occurrence (existence or occurrence). Assertions about the existence or occurrence relating to whether the assets or debts of the entity exist at a given date and whether recorded transactions have occurred during a certain period. For example, management makes an assertion that stocks of finished products listed in the balance sheet is available for sale. Similarly, management made an assertion that the sales in the income statement shows the exchange of goods or services with cash or other forms of assets (eg receivables) to the customer.