HKSA 500 Audit Evidence requires the auditor to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion. HKSA500 also identifies different types of audit procedures for obtaining audit evidence as well as offers guidance on how to assess the reliability of audit evidence.

Required:

1. For the four audit procedures which are Observation, Re-calculation, Inspection, Analytical procedures, describe an audit test using each of the procedure above to obtain evidence as to the balance of plant and equipment, including the related balances of accumulated depreciation and charges to income.