Lec 03 Ch 04 SA 500

Role of Audit Evidence

• To Prove Fraud

• To Prove Error

• To Draw Conclusion

• To Punish People

Which evidence is more reliable ?

• Purchase Requisition Note

• Goods Received Note

• Debit Note Received

• Salary Slip

Which evidence is more persuasive ?

• Oral confirmation about quantity of inventory.

• Accounting Software Generated Report

• Insurance Company Contract Which Reports Inventory As on Balance Sheet Date

• Physical Verification by Auditor

Which of the following is accounting record ?

• Employee Attendance Record

• Rent Contract

• Cash & Bank Book

• Tax Notice

Investments in Debenture of Rs 10,00,000 of 12% Interest Rate Which of the following is contradictory evidence ?

• Face Value on Debenture Certificate 10,00,000

• Discount on Issue at 5% , 50,000

• Interest on Debenture in P&L 80,000 for the year.

• Debenture Ledge Balance 10,00,000