Accounting All-in-One For Dummies, with Online Practice, 2nd Edition

Chapter 4

Collecting and Documenting Audit Evidence

IN THIS CHAPTER

Evaluating information from your client’s management

Considering the four concepts of audit evidence

Putting your knowledge and experience to work

Asking for appropriate evidence

Gathering audit documentation

After finishing risk assessment, as explained in Chapter 3, you must understand how to work with your client’s audit evidence and internal controls. This step needs to happen before you start the audit process. Understanding audit evidence and internal controls is particularly important if you’re working with a new audit client. This chapter fills you in on working with audit evidence, and Chapter 5 is all about evaluating a company’s internal controls.

Don’t ever forget that the financial statements you’re auditing are the responsibility of your client’s management. Your job is merely to express an opinion about ...