The basic framework for the auditor understands of evidence and its use to support the auditor's opinion on the financial statement. In reaching an opinion on the financial statements, the evidence gathered from the audit procedure is used to determine the fairness of the financial statements and the type of audit report to be issued... displayed 300 characters
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The characters of paper audit evidence are:
? Origin: proof of origin easily established. Audit is an industry which has existed and developed for a long time in paper. The standard of this industry was built already, the proof of origin will be found very easily, the rule is there already.
? Alteration: paper evidence difficult to alter without detection... displayed next 300 characters
This could be because of a material departure of GAAP, inadequate disclosures, or a scope limitation issue. An adverse report may be issued if there is a material, encompassing, or intentional violation of GAAP or the lack of material disclosures...
No one specific test of controls is always necessary, applicable, or equally effective in every circumstance.
The auditor may desire to further reduce the assessed level of control risk for certain assertions...
The audit risk model is specified as AR=IR x CR x DR. The inherent risk and control risk is the risk that the balance or class and related assertions contain misstatements that could be material to the financial statements when aggregated with misstatements in other balances or classes...
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