Beruflich Dokumente
Kultur Dokumente
Inspection consists of examining records or documents, whether internal or external, in paper form,
electronic form, or other media. Inspection of records and documents provides audit evidence of
varying degrees of reliability, depending in their nature and source and, in the case of internal records
and documents, on the effectiveness of the controls over their production. An example of inspection
used as a test of controls is inspection uded as a test of controls is inspection of records or documents
for evidence of authorization.
An internal document is one that has been prepared and used within the client’s organization and is
retained without going to an outside party such as a customer or a vendor. Examples include duplicate
sales invoice, employees’ time reports, and inventory receiving report. An external document is one that
has been in the hands of someone outside the client’s organization and is a party to the transaction
being documented.
Vouching refers to first selecting an item for testing from underlying accounting data and then
examining the source document (corroborating information). This procedure is used to establish the
existence or occurence of the selected item. For example, to verify the occurence of sales transactions in
the sales journal maybe compared to supporting documentss such as invoices and shipping documents.
Tracing refers to selecting an accounting transaction (corroborating information) and tracing it into the
journal or ledger (underlying accounting data). This procedure establishes the completeness of
transactions. For example, to ensure that the selected shipping documents to sales invoice then to sales
journal.
Inspection of tangible assets consists of physical examination of the assets. Inspection of assets may
provide appropriate audit evidence with respect to their existence, but not necessarily about the entity’s
rights and obligations or the valuation of the assets. Inspection of individual inventory items ordinarily
accompanies the observation of inventory counting. For example, when observing an inventory count,
the auditor may inspect individual inventory items (such as opening containers included in the inventory
count to ensure that they are not empty) to verify their existence.
Underlying accounting data consist of the book of original entry (e.g., journals and registers), the general
and subdiary ledgers, related accounting manuals, and records such as worksheets supporting cost
allocations, computations and reconciliations.
Corroborating evidence includes both written and electronic information (e.g., checks, invoices,
contracts, and minutes of meetings); confirmations and other written representations by knowledgeable
people; information obtained by the auditor from inquiry, observation, inspection, and physical
examination; and other information developed by, or available to, the auditor that permits conclusions
through valid reasoning.
Observation
Observation consists of looking at a process or procedure being performed by others. Examples include
observation of the counting of inventories by the entity’s personnel and observation of the performance
of control of activities. Observation provides audit evidence about the performance of a process or
procedure but is limited to the point in time at which the observation takes place and by the fact that
the act of being observed may affect how the process or procedure is performed.
Inquiry
Inquiry consists of seeking information of knowledgeable persons, both financial and nonfinancial, inside
or outside the entity. Inquiry is an audit procedure that is used extensively throughout the audit and
often is complementary to performing other audit procedures. Inquiries may range from formal written
inquiries to informal oral inquiries. Evaluating responses to inquiries is an is an integral part of the
inquiry process.
Confirmation
External Confirmation, requires that the auditor should determine whether the use of external
confirmation is necessary to obtain sufficient appropriate audit evidence to support specific assertions.
There are two common types of confirmation requests:
1. Positive confirmations
2. Negative confirmations
A posivitive confirmation asks the recipient to respond in all circumstances. It may request the recipient
to provide the information (called a blank form), or the confirmation may include the information and
request the respondent to indicate whether he agrees with the information. The latter type of positive
confirmation is often used because the response rate is higher than the blank form. However, because
recipients may sign the request without verifying the information, there is a risk that the information is
incorrect and tends to be less reliable.
In negative confirmation, the recipient is asked to respond only when the information is incorrect.
Because confirmations are considered significant evidence only when returned, this type of
confirmation is less competent than positive confirmation.
SOURCES
Baldres, Ramil N.; De Leon, Edward M.; Magadia, Glenn A. Auditing and Other Assurance Services, 2017