Audit Evidence - Essay

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Managerial Auditing Journal
Emerald Article: Audit evidence: the US standards and landmark cases Rocco R. Vanasco, Clifford R. Skousen, Richard L. Jenson

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To cite this document: Rocco R. Vanasco, Clifford R. Skousen, Richard L. Jenson, (2001),"Audit evidence: the US standards and landmark cases", Managerial Auditing Journal, Vol. 16 Iss: 4 pp. 207 - 214 Permanent link to this document: Downloaded on: 30-04-2012 References: This document contains references to 45 other documents To copy this document: This document has been downloaded 2787 times.

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These are explained as follows: 1. Natural evidence is that which exists all around us. It is the most convincing evidence available. 2. Created evidence requires effort to bring forth, e.g. an auditor 's own computation. To the extent that created evidence is equally simple and clear as natural evidence, it may be equally compelling. 3. Rational argumentation may constitute evidence, e.g. when ideas or conditions follow logically from observed facts, they seem to be true. In August 1980, the Auditing Standards Board (ASB) of the AICPA issued SAS No. 31: Evidential Matter (AICPA, 1980), and defined evidential matter supporting the financial statements as consisting of ``the underlying accounting data and all corroborating information available to the auditors ' '. Underlying accounting data includes the books of original entry, ledgers, and supporting work sheets. Corroborating information includes such documentation as canceled checks, bank statements, sales invoices, vendors ' invoices, time cards, requisitions, purchase orders, bills of lading, and shipping orders. It also includes evidence developed by the auditor, such as confirmations, observations, recalculations, and reconciliations. In 1993, the American Accounting Association (AAA) defined auditing as:
F F F a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events

What is evidence?
Evidence has been defined by several jurists,
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