A major decision facing every auditor is determining appropriate types and amounts of evidence to accumulate to be satisfied that the components of the
client’s financial statements and the overall statements are fairly stated. This judgment is important because of the prohibitive cost of examining and
evaluating all available evidence.
The auditor’s decisions on evidence accumulation can be broken down into the following four sub decisions:
- Which audit procedures to use?
- What sample size to select for a given procedure?
- Which items to select from the population?
- When to perform the procedures?
Critically discuss these four sub sections that are relevant for audit evidence.
Sample Solution
