Two Accounting Discussions

Georgina Onomake 

RE: Week 4 Discussion

COLLAPSE

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It is critical to evaluate data reliability in Auditing.  To be appropriate, audit evidence must be both relevant and reliable in providing support for the conclusions on which the auditor's opinion is based. The reliability of evidence depends on the nature and source of the evidence and the circumstances under which it is obtained. (Sufficient Appropriate Audit Evidence, 2020).  Effective December 15, 2020 amendments are made to Auditing Standards No. 15, effect for AS 1105: Audit Evidence (As Amended for FYE 12/15/2020 and after)

 

Data from internal versus external sources.

With effective controls there will be reliable information within a company. Inspection is an auditing method that involves examining records or documents, in paper form or electronical form, that are from internal or external sources.  Amendment of this method refers to the auditor’s responsibility with regards to using a specialist employed by the company. (Using the Work of a Company's Specialist as Audit Evidence, 2020).

 

Data obtained from original documents versus electronical. 

Evidence provided by original documents is more reliable than evidence provided by photocopies or facsimiles, or documents that have been filmed, digitized, or otherwise converted into electronic form, the reliability of which depends on the controls over the conversion and maintenance of those documents.

 

Written data versus verbal conversation records. Inquiry may be performed throughout the audit in addition to other audit procedures. Inquiries may range from formal written inquiries to informal oral inquiries.

 

Data obtained from direct versus indirect methods. Evidence obtained directly by the auditor is more reliable than evidence obtained indirectly.

 

Sufficient Appropriate Audit Evidence. (2020, 07 27). Retrieved from https://pcaobus.org/Standards/Auditing/Pages/AS1105_amendments.aspx: https://pcaobus.org/Standards/Auditing/Pages/AS1105_amendments.aspx

Using the Work of a Company's Specialist as Audit Evidence. (2020, 07 27). Retrieved from https://pcaobus.org/Standards/Auditing/Pages/AS1105_amendments.aspx: https://pcaobus.org/Standards/Auditing/Pages/AS1105_amendments.aspx

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Antonio Williams 

RE: Week 4 Discussion

COLLAPSE

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1. The fundamental contrast between the internal and external wellsprings of information is from where they are started. The information began in inner sources are by and large made and held inside the organization and does not goes to the outside gathering. The information started in external sources are commonly gotten outside the customer's association. Be that as it may, information from outer sources are viewed as more dependable than the inside sources.

2. The composed information is progressively solid since the examiner can play out his obligation’s dependent on credible documentation. Then again, if there should arise an occurrence of verbal correspondence the best possible archives and verifications of everyday money related exercises are not accessible making the verbal correspondence the most fragile wellspring of information.

3. Confirmations got through direct techniques in reviewing is more dependable than the circuitous strategies. Any archives straightforwardly acquired by the examiner from an educated source will give better outcomes in reviewing process.

4. Confirmations got from unique archives will be more dependable than the reports which are in electronic structure for instance proof like records which have been shot or digitalized, copies and so on.

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