Auditing and assurance standard aas 05, audit evidence the following is the text of the auditing and assurance standard aas 5, audit evidence, issued by the council of the institute of chartered accountants of india. Evidence in the form of documents and written representations is usually. Audit evidence isa 500 382 b appropriateness of audit evidence the measure of the quality of audit evidence. Sobh, cpa 1 the objective of the auditor is to obtain sufficient appropriate audit. In the previous articles, we have given sa 299 responsibility of joint auditors and sa 300 planning in an audit of financial statements. Audit evidence, which is cumulative in nature, includes audit.
The quantity of audit evidence needed is affected by the risk of misstatement the greater the risk, the more audit evidence is likely to be required and also by the quality of such audit evidence the higher the quality, the less may be required. Standards on auditing list of all sas with practical. Standard on auditing sa 500 revised, audit evidence. Icai is established under the chartered accountants act, 1949 act no. In auditing, an auditor cannot just form an opinion on the state of a companys financial statements without first gathering information and analyzing if the information gathered corroborates with the assertions by the companys management in the financial statement of the company. Sa 500 audit evidence effective for audits of financial statements for periods beginning on or after april 1, 2009 introduction. Revision of isa 580 management representations issues. Inspection of records and documents provides audit evidence of varying degrees of reliability, depending on their nature and source and, in the case of internal. Sa 220, quality control for an audit of financial statements. Today we are providing the complete details of auditing standard sa 500 audit evidence i. Necessarily rely on persuasive evidence than conclusive.
The effect of an inability to obtain audit evidence relating to income tax accruals. Implementation guide to standard on auditing sa 501. The objective of the auditor is to design and perform audit procedures to obtain sufficient quantity of audit evidence and appropriate audit evidence quality and reliability 2. It also explains the methods through which an auditor obtains audit evidence. Summary of sa 500 audit evidence revised ca royals. Sufficiency is the measure of the quantity of audit evidence. South african accounting profession heathcote 2012. Preface audit evidence forms the bedrock of the auditors report on financial statements. Audit techniquessa 500 audit techniques stand for the.
Com partii in advance accountancy under the guidance of prof. Sa 320 materiality in planning and performing an audit 320. Audit evidence additional considerations for specific items sa 501 17. Isa uk and ireland 500 audit evidence, concept downloadabledocumentsau00326. It looks at the reliability of evidence and grades of audit evidence as well as the evidential requirements at each stage of the audit process. Auditors use audit evidence in many different forms and sources. In this article, we will discuss various topics related to the audit evidence including the types of evidence, the procedures that use by auditors to gather the evidence as well as the quality of it.
This auditing standard is to be read in conjunction with asa 101 preamble to australian auditing standards, which sets out the intentions of the auasb on how the australian. Summary on sa 500 599 audit evidence for ca ipcc and ca final stduents. As explained in hksa 200,7 reasonable assurance is obtained when the auditor has obtained sufficient appropriate audit evidence to reduce audit risk that is, the risk that the auditor. Isa 500 reasonable assurance is obtained when the auditor has obtained sufficient appropriate audit evidence to reduce audit risk to an. Appropriate is to do with how relevant and reliable it is. Sa 450 issued under the clarity project, evaluation of misstatements identified during the audit 500599 audit evidence sa 500 revised under the clarity project, audit evidence sa 501 revisedissued under the clarity project, audit evidencespecific considerations for selected items. The effect of an inability to obtain audit evidence. Detailed discussion with practical example over sa 500. This sa is applicable to all the audit evidence obtained during the course of the audit. Auditing standard asa 500 establishes mandatory requirements and provides explanatory guidance on what constitutes audit evidence in an audit of a financial report, the quantity and quality of audit evidence to be obtained, and the audit procedures that auditors use for obtaining that audit evidence.
It serves to guide the auditor on obtaining audit evidence through the application of an appropriate mix of tests of control systems and substantive tests of transaction and balances it requests the auditor to obtain sufficient and appropriate audit evidence in order to draw reasonable conclusions on. Audit evidence provided by original documents are more reliable as. Auditor is not expected to obtain all the information as conclusions can be reached by using sampling. The inspection of records and documents provides audit evidence. The purpose of this international standard on auditing isa is to establish standards and. Icai the institute of chartered accountants of india set up by an act of parliament.
Audit evidence is more reliable when it is obtained from independent sources outside the entity. Isa uk and ireland 500, audit evidence, explains what are the auditors. Sa 500 audit evidence standard on auditing 500 youtube. Audit evidence is more reliable when it is obtained from independent sources outside the. Proposed isa 505 revised iaasb main agenda february 2007 page 2007500 agenda item 7a page 4 of 14 external confirmation process 10. Standard on auditing sa 620, using the work of an auditors expert should be read in the. Inspection of records and documents provides audit evidence of.
Engagement and quality control standards icai the institute of. The auditor should collect all the documentation in an audit file before the release date and. Share this article standard on auditing sa 500 audit evidence summary notes pdf to your friends who are studying ca, cma and cs courses. It serves to guide the auditor on obtaining audit evidence through the application of an. See section 9500 for interpretations of this section. When auditor performs audit all things with respects to audit evidence he needs to know is briefly summarized in this. Sa230 audit documentation revised india study channel. Sa 501, audit evidencespecific considerations for selected items. Audit evidencespecific considerations for selected items. Isa 500 explains what constitutes audit evidence in an audit of financial statements, and deals with the auditor s responsibility to design and perform audit procedures to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the auditor s opinion.
Audit evidence refers to information or data that use or collect by auditors as part their audit works to conclude their opinion on whether or not financial statements are prepared in all material respect and in accordance with the applicable financial frameworks. Auditing and assurance service semester iv university of calcutta. Icai the institute of chartered accountants of india. Another aspect that auditors should consider is the relevance and reliability of the information that is used as audit evidence. Audit evidence and specific considerations for certain items acca. Audit evidence 3 sources of audit evidence most of our work in forming our opinions consists of obtaining and evaluating audit evidence. This standard on auditing sa explains what constitutes audit evidence in an audit of financial. International standard on auditing isa 500, audit evidence should be read in conjunction with isa 200, overall objectives of the independent auditor and the conduct of an audit in accordance with international standards on auditing. Concept of audit evidence the international standard on auditing isa 500 5 describe what constitutes audit evidence in an audit of financial statements, and promote the auditors responsibility to design and perform audit procedures to obtain sufficient appropriate audit evidence. Sa 500, audit evidence sa 501, audit evidencespecific considerations for.
View a list of books in our collection about isa 500 and audit evidence. It requests the auditor to obtain sufficient and appropriate audit evidence in order to draw reasonable conclusions on which to base the audit opinion. The purpose of this statement of auditing standards sas is to establish standards and to provide guidance on what constitutes audit evidence in an audit of financial statements, the quantity and quality of audit evidence to be obtained, and the audit procedures that auditors use for obtaining that audit evidence. View a list of articles in our collection about isa 500 and audit evidence. The auditor who has resigned from the company shall file within a. Appropriate audit evidence, to be able to draw reasonable conclusions on which to base an audit opinion. Standard on auditing sa 500 audit evidence summary notes pdf hope this article, will help you to check the details of standard on auditing sa 500 audit evidence summary notes pdf. In this module the specific requirements of section 500 about audit evidence are discussed. Audit techniques to obtain audit evidence inquiryquestioning the management inspectionexamining records or documents.
It serves to guide the auditor on obtaining audit evidence through the application of an appropriate mix of tests of control systems and substantive tests of transaction and balances. Sa 500 audit evidence revised if you have any query, suggestion, ideas, articles and want to share with us. Visit the global learning centre for the full isa 500. Audit considerations relating to an entity using a service organisation. Jun 21, 2019 this canadian auditing standard cas explains what constitutes audit evidence in an audit of financial statements, and deals with the auditors responsibility to design and perform audit procedures to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the auditors opinion. Evaluation of misstatements identified during the audit. In an era where chartered accountants are increasingly subjected to public scrutiny and are facing investigation at the drop of the hat, sas provide them the necessary shield to withstand the storm. View isa 500 audit evidence from accounting 101 at university of indonesia.
Isa 500 explains what constitutes audit evidence in an audit of financial statements, and deals with the auditors responsibility to design and perform audit procedures to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the auditors opinion. Standard on auditing sa 500 audit evidence summary notes pdf. Isa 500 audit evidence bassam daoud sobh cpa bassam d. This international standard on auditing isa deals with specific considerations by the auditor in obtaining sufficient appropriate audit evidence in accordance with isa 330, 1 isa 500 2 and other relevant isas, with respect to. Audit evidence 381 isa 500 auditing introduction scope of this isa 1. Asa 500 explains what constitutes audit evidence in an audit of financial statements, and deals with the auditors responsibility to design and perform audit procedures to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the auditors opinion. While recognizing that exceptions may exist, the following generalizations about the reliability of audit evidence may be useful. Sa 500 510 b appropriateness of audit evidence the measure of the quality of audit evidence. When the auditor decides to request positive or negative confirmations, the auditor shall plan. Standard on auditing500 sa500 revised audit evidence.
Other sas deal with specific aspects of the audit for example, sa 315. Summary on sa 500599 audit evidence for ca ipcc and. Having regard to the importance of evidence icai has issued sa 500 which. Dec 03, 20 summary of sa 500 audit evidence revised posted on december 3, 20 updated on december 6, 20. Sa 501 audit evidence specific considerations for selected. Audit evidencespecific considerations for selected items isa 501 398 introduction scope of this isa 1. This international standard on aud iting isa explains what constitutes audit evidence in an audit of financial statements, and deals with the auditors. Chapter 6audit evidence, audit objectives, audit programs and working papers topdown vs. Auditing standard asa 500 audit evidence asa 500 compiled 7 auditing standard authority statement auditing standard asa 500 audit evidence as amended to 5 december 2018 is set out in paragraphs aus 0. In order to facilitate understanding of the scope and authority of the pronouncements of the auditing and assurance standards board aasb, the icai has issued revised preface viz. For example, the standard on audit sa 500, audit evidence, contains the fundamental concepts relating to audit evidence such as what constitutes sufficient appropriate audit evidence, information that can be used as audit evidence, selection of items for testing to obtain audit evidence, inconsistency in or doubts over reliability of audit evidence, etc. Isa 500 audit evidence bassam daoud sobh cpa bassam d sobh cpa 1 the objective of the auditor is to obtain sufficient appropriate audit evidence. Isa 500 audit evidence is one of the international standards on auditing. Pdf an audit evidence planning model for the public sector.
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