Category Archive for: Audit Evidence


Describe directional testing While obtaining audit evidence the auditor will determine the direction of testing. The direction of testing may either be from source documents to amounts reflected in financial statements balances or from financial statements to source documents. The appropriate direction will depend upon the purpose of a particular audit test. For example, in carrying out test of controls,…

Read More →


Relevance means that the audit procedure should be relevant to assertion. For example, confirmation of balance from a customer is a relevant evidence as regards existence of receivable, but it may not be relevant as regards collectability of the balance due from customer Also, physical observation of inventories is relevant evidence relating to existence, but is not appropriate evidence to…

Read More →


Auditing process involves: DIFFERENCE BETWEEN TESTS OF CONTROLS AND SUBSTANTIVE  PROCEDURES Tests of controls are performed to obtain evidence of compliance of controls established by the client. Substantive tests involve performance of procedures to obtain direct evidence about the amounts and disclosures in financial statements. Basic objective of substantive tests is therefore, providing evidence as to credibility of account balances…

Read More →

Back to Top