Audit evidence collection

Auditors used different methods of audit evidence collection. The following are some of the popular methods:


This involves physical examination of supporting accounting documentation, contracts, records and board of director minutes. It also includes physical examination of the assets. This enables the auditor to verify the existence but not necessarily ownership and valuation of assets.


This involves looking at a process or procedure being performed by others. For instance, observation of payment of wages and salaries, physical count of inventory or opening of mail. This helps the auditor to have an assurance whether official procedures are followed

Inquiry and observation

Inquiry consists of seeking information of knowledgeable person inside or outside the entity. It may range from formal written inquiry to oral inquiries.

Confirmation consists of corroborating evidence from third parties with the internal evidence. For instance the auditor may verify accounts receivables by circularizing the debtors.


This involves verifying the arithmetical accuracy on accounting records or accounts balance. The auditor does this by independent recalculating account balances to establish how they were arrived at.

Analytical review procedures

This involves analysis of significant accounting ratios and trend performance including investigations of fluctuations that occur between the current financial performance with the previous one and check whether other information is consistent with such relationship.

Computer assisted audit techniques

These are audit software that enables the auditor to perform significant audit tasks that may include:

• Computation of tax liabilities• Performance of regression analysis to determine slow moving items.• Preparation of debtors listing and age analysis of debtors. Audit evidence collection methods are used based on the task at hand.

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