Seminar in Accounting, Chapter 10: "Audit Evidence and Working Papers" notes

Persuasive Audit Evidence

(10.1) Audit evidence that enables the internal auditor to formulate well-founded conclusions and advice confidently.

Audit Procedure

(10.2) A specific task performed by the internal auditor to gather the evidence required to achieve the prescribed audit objectives.

Computer-Assisted Audit Technique

(10.3) Any automated audit technique, such as generalized audit software (GAS), test data generators, computerized audit programs and specialized audit utilities.

Professional Skepticism

(10.1) The state of mind in which internal auditors take nothing for granted; they continuously question what they hear and see, and critically assess audit evidence.

Reasonable Assurance

(10.1) A level of assurance that is supported by generally accepted auditing procedures and judgments.

Audit Risk

(10.1) The risk of reaching invalid audit conclusions and/or providing faulty advice based on the audit work conducted.

Vouching

(10.2) Tracking information backward from one document or record to a previously prepared document or record, or to a tangible resource.

Tracing

(10.2) Tracking information forward from one document, record, or tangible resource to a subsequently prepared document or record.

Analytical Procedure

(10.2) the process of assessing information obtained during an engagement by comparing the information with expectations identified or developed by the internal auditor.

External Benchmarking

(10.2) Comparing performance information for the organization with comparable information from other organizations or the industry in which the organization operates.

Internal Benchmarking

(10.2) Comparing performance information from one organizational unit with comparable information from other organizational units.

Continuous Auditing

(10.3) The process of using computerized techniques to perpetually audit the processing of business transactions.