When Determining Sufficient and Appropriate Audit Evidence in Order to Form
When determining sufficient and appropriate audit evidence in order to form an opinion on the client's financial statements the auditor compiles audit documentation to support the opinion.The largest portion of audit documentation will include detailed supporting schedules prepared by the client or the auditor in support of specific accounts on the financial statements.The major types of supporting schedules include analysis schedules and tests of reasonableness.Discuss those two schedules and give an example for each schedule.
The basis for preparing financial statements for companies is the general ledger.As soon as possible the auditor obtains the general ledger accounts of the client and prepares a working trial balance.Discuss the audit documentation in the current file that relates to the working trial balance.Include a description of lead and support schedules in your answer.
Reclassification entries are made in the statements to present accounting information properly,even when the general ledger balances are correct.
An example of a supporting schedule is a reconciliation of amounts,which consists of the details that make up a year-end balance.