ISA 500 Audit Evidence

This blog is written by Mr. Khizer Abbasi, Associate Audit and Assurance. Please read this concise blog and provide your valued comments.

ISA 500 Audit Evidence

Scope

ISA 500 explains what constitutes audit evidence in an audit of financial statements, and deals with the auditor’s responsibility to design and perform audit procedures to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the auditor’s opinion.

Objective

The objective of the auditor is to design and perform audit procedures in such a way as to enable the auditor to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the auditor’s opinion.

Requirements

  • ISA 500 require auditor to Design and perform audit procedures that are appropriate in the circumstances;
  • When designing audit evidence consider the relevance and reliability of the information;
  • ISA 500 require auditor for management expert work
    • Evaluate the competence, capabilities and objectivity of that expert
    • Obtain an understanding of the work of that expert; and
    • Evaluate the appropriateness of that expert’s work as audit evidence for the relevant assertion.
  • ISA 500 require auditor for using information produced by the entity
    • Obtaining audit evidence about the accuracy and completeness of the information; and
    • Evaluating whether the information is sufficiently precise and detailed for the auditor’s purposes.
  • Select the items for test of controls or test of details that are effective for meeting purpose

.Khizar Abbasi