Phase I of the audit primarily relies on which type/s of audit evidence?
A) Inquiries of client
B) Documentation
C) Analytical procedures
D) All of the above

Question

Quizplus · Accepted Answer

Phase I of the audit primarily relies on all three types of audit evidence - inquiries of the client, documentation, and analytical procedures. Each type of evidence serves a unique purpose in the audit process, and together they provide a comprehensive understanding of the client's business and financial reporting practices. Inquiries of the client allow the auditor to obtain information directly from the client about their operations and financial reporting practices. Documentation, such as financial statements, contracts, and invoices, provides tangible evidence to support the information reported by the client. Analytical procedures involve the use of comparison and trend analysis to identify unusual fluctuations in account balances or financial ratios, which may indicate potential areas of concern that require further investigation. By relying on a combination of these three types of evidence, the auditor can gain a deep understanding of the client's business and financial reporting practices, which serves as the foundation for the audit process.

Phase I of the Audit Primarily Relies on Which Type/s