The third standard of fieldwork states that the auditor must obtain sufficient appropriate audit evidence by performing audit procedures to afford a reasonable basis for an opinion regarding the financial statements under audit. The appropriate audit evidence required by this standard may be obtained, in part, through:

Question

Quizplus · Accepted Answer

Choice "C" is correct. Analytical procedures are substantive tests that provide audit evidence used to assess the reasonableness of account balances. Choice "A" is incorrect. Flowcharting the internal control structure is used in obtaining an understanding of internal control, but it is not a procedure by which audit evidence is obtained. Choice "B" is incorrect. Audit evidence with respect to the year-end financial statement balances generally is not obtained as part of the planning process. Choice "D" is incorrect. Audit documentation describes the procedures followed and results of testing. Since it is prepared by the auditor, it does not represent audit evidence by itself.

The Third Standard of Fieldwork States That the Auditor Must