What methods can be used to gather audit evidence?

Gathering audit evidence entails collecting information and facts that support an auditor's findings and conclusions. There are several methods that auditors employ to gather audit evidence. Firstly, they can utilize documentation as evidence, which involves examining and analyzing various documents like financial statements, contracts, invoices, and bank statements. Secondly, physical inspection involves verifying the existence, condition, and value of tangible assets through observation. Thirdly, inquiry involves obtaining information from management, employees, or other stakeholders through interviews or questionnaires. Fourthly, observation involves directly observing the activities and processes within an organization to assess their compliance with established policies and procedures. Lastly, analytical procedures involve comparing financial data from different periods or benchmarking against industry standards to identify trends, outliers, or potential anomalies. These methods, when used in combination, enable auditors to gather reliable and sufficient audit evidence.

This mind map was published on 25 August 2023 and has been viewed 116 times.