Why audit evidence is persuasive not conclusive?
Matthew Sanders
Score: 5/5 (13 votes)
AUDIT EVIDENCE IS GENERALLY PERSUASIVE RATHER THAN CONCLUSIVE. ... This is because generally it is difficult to obtain conclusive evidence.
What is persuasive audit evidence?
Audit evidence is information obtained by the auditor to draw conclusions to support opinion on the Financial statements. Persuasive audit evidence will be those evidence which are good at persuading someone to do or believe something through reasoning or the use of temptation.
What is the most persuasive audit evidence?
Although the bank statements are in the possession of the client, they originated outside of the client and, relative to the other responses, they are the most persuasive.
What is persuasive evidence?
Persuasive evidence is evidence that has the power to influence or persuade someone to believe in its truth.
What is conclusive audit evidence?
Conclusive evidence is a solid evidence after which no further proof or inquiry is required & evidence in itself is complete. Conclusive evidence would be if you sent confirmation letter to all customer and pursued all customer until they respond.
ACC311-5-04 - Persuasive nature of audit evidence (Inherent Limitation of Audit)
Why audit evidence is persuasive rather than convincing?
4-6 Audit evidence is usually persuasive rather than convincing for two reasons. First, since an audit must be completed in a reasonable amount of time and at a reasonable cost, the auditor examines only a sample of the transactions that compose the class of transactions or account balance.
What is meant by conclusive evidence?
Evidence that must, as a matter of law, be taken to establish some fact in issue and that cannot be disputed. For example, the certificate of incorporation of a company is conclusive evidence of its incorporation.
What are the defining characteristics of persuasive audit evidence?
What are the defining characteristics of persuasive audit evidence? To be persuasive evidence must be reliable, relevant and sufficient. What is the relationship between audit objectives and audit procedures?
What are the limitations of auditing?
- LIMITATIONS OF AUDIT.
- (i) Higher Cost Burden: Due to Higher Cost Burden, the auditor limits his scope of work to selective testing or sampling thus in depth checking of books of accounts is not possible.
- (ii) Based on test checks: Generally an auditing exercise is based on test checking.
Who has the burden of persuasion?
Whereas the BURDEN OF GOING FORWARD shifts from the prosecution to the defense in a criminal case, or from the plaintiff to the defendant in a civil case, as evidence is presented and disproved, the burden of persuasion remains with the plaintiff or the prosecution until the case is concluded.
What are examples of persuasive evidence?
- State an observation and connect that observation to your opinion. Interviews.
- Use quotes or information from an interview to prove your point. Surveys/Data.
- Use data from a survey to prove your point. Experiments.
Which is the least persuasive type of audit evidence?
Explanation: The copies of sale invoice which are inspected by the auditor is the least persuasive evidence or we can say it is a conclusive evidence that can be used for auditing. This means it is solid evidence for which no further proof or any inquiry is needed.
What types of evidence is most persuasive?
Story. This is something from your personal experience. It may not readily prove your contentions, but it brings them to life. Handled well – which is to say, with authenticity – it can be the most powerful form of evidence.
Which shows the correct ranking of audit evidence from the least persuasive to the most persuasive?
The most persuasive is externally generated evidence sent directly to the auditor, then externally generated evidence held by the client, then the least persuasive evidence is internally generated evidence.
Which type of audit evidence would be considered the weakest type?
One of the weakest forms of audit evidence is management inquiry. Management inquiry is when the auditor simply asks management about an accounting transaction. While this is not an appropriate audit procedure on its own, it is useful when used with other procedures.
What are the 8 types of audit evidence?
- Physical examination. Physical examination consists of auditors physically verifying the existence of various assets. ...
- Confirmations. ...
- Documentary evidence. ...
- Analytical procedures. ...
- Oral evidence. ...
- Accounting system. ...
- Reperformance. ...
- Observatory evidence.
What are the disadvantages of audit Programme?
- (1) Rigidity. ...
- (2) Audit Program Harasses to Staffs. ...
- (3) Possibility of being Unsuitable. ...
- (4) Audit Program Increases the Chance of Fraud. ...
- (4) Audit Program is Unsuitable to Small Concern. ...
- (5) Exclusion of Problems of New Technology.
What is audit evidence?
Audit evidence consists of both information that supports and corroborates management's assertions regarding the financial statements or internal control over financial reporting and information that contradicts such assertions.
Which is a primary limitation of the audit risk model?
The audit risk model does not adequately consider external forces on the client organization.
In which audited statements are accepted as evidence?
Audit evidence is evidence obtained by auditors during a financial audit and recorded in the audit working papers. Auditors need audit evidence to see if a company has the correct information considering their financial transactions so a C.P.A. (Certified Public Accountant) can confirm their financial statements.
What is reliability of audit evidence?
Reliability. The reliability of evidence depends on the nature and source of the evidence and the circumstances under which it is obtained. For example, in general: ... Evidence obtained directly by the auditor is more reliable than evidence obtained indirectly.
What are the characteristics of reliable audit evidence?
- Nature refers to the type of information received. ...
- Relevance refers to the pertinence of the information to provide an opinion.
- Reliability refers to determining whether the material can be trusted or relied upon to form an opinion.
What Does not conclusive evidence mean?
noun. Evidence which by law cannot be disputed.
What is the rule of conclusive evidence?
“Conclusive proof”. —When one fact is declared by this Act to be conclusive proof of another, the Court shall, on proof of the one fact, regard the other as proved, and shall not allow evidence to be given for the purpose of disproving it.
What is another word for conclusive evidence?
Some common synonyms of conclusive are decisive, definitive, and determinative. While all these words mean "bringing to an end," conclusive applies to reasoning or logical proof that puts an end to debate or questioning.
