Types of audit information and documents

Types of audit information and documents

The types of audit information and documents, the types of valid documents and documents that are collected by independent auditors to provide a basis for providing opinions on financial statements are:

1 objective observation

In many cases, he confirmed the accuracy of what was included in the financial statements by objective observation. For example, the figures related to sexual inventory or rumi fund inventory can be confirmed by objective observation.

Objective observation by the auditor himself is one of the strongest auditing documents, and through it, the existence of fixed assets such as land, buildings, vehicles, office furniture, office equipment, and the like can be definitely proven and confirmed.

Of course, to obtain these documents, it is necessary to use a special auditing method.

In some cases, the existence of an independent expert is used to provide information about the quality and condition of one or more types of assets.

In the case of some assets such as accounts receivable or intangible assets such as goodwill, it cannot be proven through objective observation.

2 Statements of third parties

Statements of third parties, in writing or verbally, are often a significant help to the auditor to confirm the matter or event under investigation.

For example, if the debtors each confirm directly as auditors.

that the debt entered in their name in the records of the institution under investigation really exists and is accepted by them, the authenticity of such items should be ascertained for the auditor.

Or if the tax auditor confirms that the institution has paid its tax or arranges to pay it, or the bank of the institution’s account confirms that the credit guarantee in the current account of the institution is valid against customer promissory notes or collateral.

It can be considered as strong audit documents.

Of course, the credits of third parties are subject to two important points.

First – professional, ethical and commercial competence of the verifier.

Second – first-hand and unbiased statements.

3 Valid official or unofficial documents

Various documents, including purchase and sale invoices, receipt and payment documents, receipts issued by vendors, receipts and warehouse transfers, contracts, minutes of the board of directors and general meetings, and other types of documents are the most common documents used by auditors. .

It is through their consideration and handling that many operations and transactions are approved by the auditor.

Of course, in terms of auditing, the validity of all documents is not uniform.

And it cannot be said that a purchase invoice issued by another company has the same value as an internal document of the institution, such as a payment document.

Or the value of an administrative expense document that relies on documents is not the same as an expense document that is so-called without attachments.

Each of the types of documents that are cited by auditors as audit evidence has a different value.

And for this reason, as will be discussed later under the title of Sundersi technique, auditors do not always rely only on documents.

Rather, at the same time, they take into account many other issues so that they can reach a correct conclusion.