Audit Evidence

Dear Lakshmi,

If the auditor is conducting the audit of the client for the first time then, he will have to refer to:-

1) Previous Year Annual Report of the client

2) Discussion with the previous auditors, legal advisors, company secretary etc.

3) Audit working papers and other relevant documents of the previous auditor.

4) Discussion with the Higher Management and the Internal Auditors.

5) Review of the Statutory and Internal Audit Reports.

7) Review of the Tax Returns, Financial Statements (Balance Sheet, Profit and Loss A/c and other relevant Schedules)

8) Visiting the place of work of the client.

Thus, when the auditor is doing audit for the first time he can take help of the people mentioned above to gather the relevant information to express his views on the Financial Statements of the Organisation.

Regards,

Devendra P Kulkarni

Thank you..

Dear,

Even if you are auditing the client for the first time the experience of earlier audit will help you. It will help you in decision making, but the preactices followed by the two clients may be different so you need to have a broader outlook. Analyse the system of client and then set any benchmark. If you are audint for the first time then you will not have advantage of this aspect.

Regards

Also refer SA 310 Knowledge of Business in your Auditing Module.

Regards

Devendra

ya agree with devendra

Very Well Explained by Devendra & Sanjay Sir

Thanks

But all the matters are entirely diffrent with bank audit . in this we have to take a look in variety of matter although chances of audit evidence found are negligible due to core banking solution for e.g  drawing power is being feeded in system so auditor hasto go through with it. and drawing will be calcuated as stock-creditors+debtor-margin.

Here's the link to Audit Evidence explanation by Prof Rakhshan Vahid https://youtu.be/VmpliBG_RtE

All the best