In an audit of financial statements, an auditor must judge the validity of the audit evidence obtained.

Question:

In an audit of an auditor must judge the validity of the audit evidence obtained.
Required
In the course of an audit, the auditor asks many questions of client officers and employees.
Describe the factors that the auditor should consider in evaluating inquiry and oral evidence provided by client officers and employees.
Discuss the validity and limitations of inquiry and oral evidence.
An audit may include computation of various and operating ratios for comparison to prior years and industry averages. Discuss the validity and limitations of ratio analysis in an audit.
In connection with his audit of the of a manufacturing company, an auditor is observing the physical inventory of finished goods, which consists of expensive, highly complex electronic equipment. Discuss the validity and limitations of the audit evidence provided by the procedure.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...