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FAU Session 3 Audit Evidence, Materiality and Procedure 2
FAU Session 3 Audit Evidence, Materiality and Procedure 2
Session 3
Audit Evidence, Procedure & Materiality
20 Feb 21
AUDIT EVIDENCE
ST =
AL =
RELIABILITY OF AUDIT EVIDENCE (AWESOME)
QUESTIONS
Audit Evidence Reliable
or not?
1. I
2. R
3. O
Substantive Procedures:
1. A
2. E
3. I
4. U
Audit Procedures T or S
Occurrence Existence
Completeness Completeness
Materiality
Quantitative Qualitative
Professional
Judgement
CALCULATION OF MATERIALITY
Value %
Revenue 0.5 - 1%
Gross Profit 0.5 - 1%
PBIT 5%
Net Profit 5 - 10%
Total Assets 1 - 2%
PROFESSIONAL SCEPTICISM