One quality of audit evidence is . Audit evidence from sources more reliable than from sources

Another quality of audit evidence is . Evidence obtained directly by more reliable than if obtained

Third quality of audit evidence is . Evidence from records is more reliable when system operates effectively

Fourth quality of audit evidence is . Evidence in or representations more reliable than representations

Fifth quality of audit evidence is . documents are more reliable than or

Audit trail- Examination of of all transactions that are carried out by / during an audit. It starts by looking at , then , then & finally

Internal control test looks to determine whether that is meant to ensure that an is correct is properly & has operated

Substantive test looks to gather that is correct. It can either be test of or or an

Risk arising from sales on credit is there may be or . Therefore, function is required to ensure that is only extended to right customers & that payment is received in accordance with agreed

When looking at receivables auditor can get confirmations. This is audit evidence obtained as written response to auditor from in paper form or by electronic or other medium. This is useful as it provides audit evidence for & & . Also, it provides good audit evidence as it is from source & in form

Confirmation letter is written by client but sent by with response directly to auditor. Auditor requests confirmation but can also request confirmation. However, this would not be audit evidence. Client may refuse permission to send to some customers but must validate reasons & seek audit evidence of reasonableness of disclosure

Auditor sends confirmation letter to of accounts receivable based on . Auditor needs to pay special attention to , accounts, accounts during period under review, accounts with balances, accounts settled by payments, accounts with balances & finally accounts which have been by date of audit examination

One exception on trade receivables confirmations is there may be between & . needs to investigate & consider need for

Another exception on trade receivables confirmations is problems. This is in year of recognition of . Consider extending

Third exception on trade receivables confirmations is . This involves by reference to of receipt of cash

Fourth exception on trade receivables confirmations is who are suppliers net-off balances & . Check whether this is

Fifth exception on trade receivables confirmations is & . This involves stealing & posting amounts. There needs to be audit of cash receipts

One step for non-response to confirmation requests is to check & to send letter to

Another step for non-response to confirmation requests is to by phone with request that is then sent

Third step for non-response to confirmation requests is to adopt procedures by reviewing cash receipts, shipping & near period end

With valuation assertion, risk of is key concern. Analytical review is powerful tool by looking at days outstanding, changes & as percentage of turnover. Auditor can also compare with data. Also, auditor needs to review report as it is key piece of audit evidence. Also, they need to look at with customers & solicitors

Auditors need to make sure when doing audit of , suppliers would be expected to provide & monthly statements which provide strong form of independent evidence. If controls are then statements might not be available & hence like confirmation process maybe undertaken. Also, auditor needs to look at data to make sure goods received notes & invoices either side of year end date are correctly

When looking at audit of provisions/contingencies, need to obtain details of all in accounts & disclosed , obtain details of balances & , review relating to item with solicitors, banks customers, insurance company etc, send letter to requesting his view if appropriate, discuss with (see whether they have created expectation in other party that they will discharge ), consider likelihood of via insurance or third party & finally consider whether item has been properly disclosed as or

Key assertions for testing inventory include & , , & , , & , , & , tests of valuation & & finally of counts

Key assertions relating to trade receivables are & , , & , , & & finally