Module 4: Responding to Risk Assessment: Evidence Accumulation and Evaluation


The entire financial statement audit may be described as a process of evidence accumulation and evaluation. This process enables the auditor to formulate an informed opinion as to whether the financial statements are presented fairly in accordance with US generally accepted accounting principles. The following “Diagram of an Audit” was first presented and explained in the auditing overview section.

A. Evidence—General

B. Evidence—Specific (Substantive Procedures)

C. Other Specific Audit Evidence Topics

D. Completing the Audit

E. Other Related Topics

Key Terms

Multiple-Choice Questions

Multiple-Choice Answers and Explanations


Simulation Solutions

Diagram of an Audit


After assessing the risks of material misstatement, the auditors design and perform further audit procedures—tests of controls and substantive procedures. The internal control module discussed tests of controls. This module emphasizes substantive procedures. It first covers audit evidence as a concept and discusses types of audit evidence generated through performance of substantive procedures, both (1) substantive analytical procedures and (2) tests of details of transactions, account balances, and disclosures. It concludes with audit procedures involved in completing the audit.

Numerous questions on audit evidence appear ...

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