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procedures in computing the work of the expertthe auditor must obtain reasonable assurance that the experts work constitutes appropriate audit
communication with the expertif the auditor intends to use the work of an expert then he must communicate with the expert well in advance to confirm
forms of evidencea observation is usually witnessing internal control and book-keeping procedures it includes attendance at wages pay out observation
techniques of obtaining evidenceisa 500 mentions them asa inspection of records or documents b inspection of tangible assets c observation d inquiry
relevancethe auditor obtains evidence either through compliance testing of the internal controls or through substantive tests of the information
sufficiency of audit evidencethe audit evidence should in total enable the auditor to form an opinion on the financial statements sufficiency is a
the concept of audit evidenceauditing is an evidence gathering exercise it is an exercise carried out to confirm the assertions made by the
systems based audit approachthe basis of ias 400 risk assessment and internal controlthe term systems audit refers to the typical audit approach to
audit risk and business riskwe saw in earlier studies that audit risk is often categorized as the product of inherent risk control risk and detection
companies modes of operationsome companies especially small ones operate without any overtly expressed plan and simply carry out the business as
business risk analysisbusiness risk can be analyzed between external and internal risksexternal riskschanging legislation eg minimum wagechanging
the business risk approach to auditingin recent years the broader concept of business risk has been developed by the larger firms it was the subject
business risk approachthis approach requires the auditor to determine what are the very important business risks which the client faces this line of
procedures that auditor adoptsthe auditorrsquos procedures will include1 getting an understanding of the entity as a whole in order to see the
measures to be taken by the individual auditorproper recruitment and training of all staffallocating staff to particular audits where they have the
higher normal riskseveral audit assignments involve high audit risk and usually in any client there will always be at least one high risk
normal audit riskindications that an audit is a normal risk audit are1 the client having management and staff who are competent and have integrity2
audit riskas we have seen many parties rely on the audit opinion to make decisions and therefore it is now a well established fact that if the
reporting to the membersexcept the faults and irregularities outcome in the accounts not giving an accurate and fair view or do not conform to
irregularitiesirregularities can be explained as intentional distortions of financial statements for whatever reason and also as misappropriation of
communications to regulatory and enforcement authoritiesthe auditorrsquos professional responsibility to sustain the confidentiality of client
communicationwhenever the auditor recognizes a misstatement resultant from fraud or a suspected fraud or error the auditor must consider the
evaluation and disposition of misstatements and the effect on the auditorrsquos reportwhenever the auditor verifies that or is not capable to
procedures when fraud is suspectedwhenever the auditor encounters situation that might indicate that there is a material mis-statement in the
responsibilities of the auditorthe auditor has no duty for the prevention and recognition of fraud and error though the annual audit might act as a