What does audit evidence mean on the CPA exam?
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Audit evidence. Everything the auditor uses to reach a conclusion, including the accounting records and anything corroborating them. Judged on whether it is sufficient in quantity and appropriate in relevance and reliability.
Defined against AU-C 500.05.
Which CPA exam sections use audit evidence?
Audit evidence appears in the AUD section of the CPA exam.
Other terms defined against AU-C 500
- audit procedures: The specific work performed: inspection, observation, inquiry, confirmation, recalculation, reperformance and analytical procedures.
- competence, capabilities, and objectivity: The three things evaluated before relying on anyone else's work: whether they have the skill, whether they have the resources to apply it, and whether they are free of pressure to reach a particular answer.
- sufficient appropriate audit evidence: Enough evidence, of the appropriate kind.
Related terms
- written representations: Statements the auditor requires from management to confirm matters or support other evidence.
- audit sampling: Selecting and evaluating less than 100% of a population of audit relevance so the sample is expected to be representative, giving a reasonable basis for conclusions about the whole population.
- report release date: The date the auditor grants the entity permission to use the report.
- scope limitation: Anything that stops the auditor obtaining evidence they judged necessary, whether imposed by the client or by circumstance.
- disclaimer of opinion: The auditor states that no opinion is expressed, because they could not get evidence and the possible effect is pervasive.
- management's specialist: An expert management uses to help prepare the financial statements, such as an actuary or an appraiser.